⚠️ Disclaimer:
This post reflects my personal opinions and analysis based on publicly available information. I am not a SEBI-registered advisor. Please consult a certified financial expert before making any investment decisions.
Market Cautious Ahead of May 8 Open
Indian equity markets are poised for a cautious start on May 8, 2025, amid a mix of global uncertainties and rising domestic tensions. The US Federal Reserve maintained interest rates but flagged increasing risks to the economic outlook, which has cast a shadow over global sentiment.
On the domestic front, geopolitical tensions with Pakistan following ‘Operation Sindoor’ are dampening investor confidence. The GIFT Nifty, recovered from last night loss. that’s a positive sentiment.
Key Global Influences: Fed’s Stance and US-China Trade Talks
- Federal Reserve Impact: The Fed kept interest rates unchanged (4.25%–4.50%) but raised concerns over inflation, unemployment, and overall economic stability.
- Jerome Powell’s Warning: Continued tariff hikes could stoke inflation, slow growth, and push unemployment higher.
- US-China Trade Tensions: Despite planned talks, President Trump has refused to ease tariffs—keeping global trade uncertainty intact.
These developments have led to mixed reactions in Asian markets.
Indian Market Sentiment: Operation Sindoor Spooks Traders
The GIFT Nifty, often used as an early indicator of market opening, is trading around 24,420, recovering from last night loss.
- Rising India-Pakistan geopolitical tensions
- A lack of clear global direction
FII and DII Activity: Divergent Strategies
- Foreign Institutional Investors (FIIs) were net buyers on May 7, with inflows worth ₹2,585.86 crore.
- Domestic Institutional Investors (DIIs) were net sellers, offloading shares worth ₹2,378.49 crore.
This divergence hints at contrasting market outlooks between foreign and domestic investors.
Nifty Open Interest Analysis: Range-Bound Movement Expected
Analyzing Nifty’s Open Interest (OI) for May 8:
- Support is likely around the 24,300 strike (highest put OI).
- Resistance lies near the 24,400–24,500 levels (significant call writing).
Expected Trading Range: 24,300–24,500
This narrow range suggests that the market may remain range-bound, unless triggered by a strong catalyst.
Global Economic Highlights: What Happened on May 7
- The Federal Open Market Committee (FOMC) emphasized economic expansion but acknowledged higher risks.
- The Fed will continue reducing its balance sheet while targeting its 2% inflation goal.
- US Treasury Secretary Scott K.H. Bessent shared optimism about job growth and economic momentum due to tax cuts and deregulation.
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Technical analysis nifty and bank nifty 8th may 2025
my personal opinion, looking for buying opportunity if the value area act as support. sell below value area. today is expiry day so market may be mute, and we have unsolved issues like Indo- pak escalation, trade war etc.
If yesterday’s value area holds and acts as support, I will consider a long position. I am also monitoring the weekly value area above as a potential target. Conversely, I will consider a short position if yesterday’s value area is broken. These are my personal opinions.
Final Thoughts: What to Watch Today
Traders should remain cautious today and closely watch:
- Developments in India-Pakistan relations
- Reactions from US-China trade negotiations
- Movement in global indices, especially from the US and Asia
