Indian stock market: Indian equities witnessed selling pressure on Friday, May 8, as both benchmark indices declined more than 0.50% amid escalating geopolitical tensions triggered by reported Iran-US clashes near the Strait of Hormuz.

The Nifty 50 settled 0.55% lower at 24,193, while the Sensex dropped 0.67% to close at 77,321. Despite sharp intraday volatility, both indices managed to post weekly gains of over 0.70%. In the broader market, performance remained mixed. The Nifty Smallcap 100 index advanced 0.22%, whereas the Nifty Midcap 100 index edged down 0.15%.

Stock market next week

Nifty 50

On Friday, the Nifty 50 opened with a gap-down at 24,233.65 and witnessed weakness throughout the session. The index recorded its intraday high of 24,253.00 in the first half, while selling pressure intensified in the latter half, dragging the index to an intraday low of 24,126.65. The index eventually closed at 24,176.15, registering a decline of 150.50 points or 0.62% over the previous close. On the daily timeframe, the formation of a bearish candlestick pattern indicates sustained selling pressure and moderation in bullish momentum.

“From a technical perspective, immediate support is placed in the 24,000–24,080 range, while resistance is observed between 24,330 and 24,400 levels. The Relative Strength Index (RSI) stands at 52.40, remaining above the midpoint of 50 but indicating weakening momentum. In the derivatives segment, notable call writing was seen at the 24,200 strike, followed by 24,300, while significant put writing was observed at 24,200 and 24,000 levels, indicating a defined trading range for the near term,” said Sumeet Bagadia, Executive Director at Choice Broking.

Bank Nifty

The Bank Nifty index opened with a gap-down at 55,783.95 and faced selling pressure right from the opening minutes of the session. The index recorded its intraday high of 55,797.70 near the opening level and continued to decline throughout the day, marking an intraday low of 55,062.50 in the second half. The index eventually closed at 55,310.55, registering a decline of 736.85 points or 1.31% for the day. On the daily timeframe, the formation of a bearish candlestick pattern with the intraday high near the opening level indicates persistent selling pressure throughout the session.

On the Bank Nifty outlook, he added that from a technical standpoint, immediate support is placed in the 54,800–55,000 range, while resistance is seen in the 55,800–56,000 zone. The Relative Strength Index (RSI) stands at 48.56, slipping below the midpoint level of 50 and indicating weakening momentum with a bearish bias. Sustaining above support levels will be important to avoid further downside pressure.

Bagadia further recommended investors to remain selective and wait for stability near support zones or a decisive breakout above resistance levels before initiating fresh positions, as the recent price action suggests a weak trading session with both indices witnessing sustained selling pressure throughout the day. While broader market volatility remained relatively contained, weakening momentum and bearish candlestick formations indicate cautious sentiment among market participants, he added.

Stocks to buy

Sumeet Bagadia has recommended three stocks to buy on Monday, April 27. The three stock picks by Bagadia are – Morepen Laboratories, Yes Bank, and Trident.

1] Morepen Laboratories: Buy at ₹45.64 | Target Price: ₹50 | Stop Loss: ₹43.50

2] Yes Bank: Buy at ₹22.95 | Target Price: ₹25 | Stop Loss: ₹21.90

3] Trident: Buy at ₹26.54 | Target Price: ₹28.50 | Stop Loss: ₹25.50

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.