⚠️ 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.
Markets are poised for a cautiously negative opening on May 7, 2025. At 7:20 am gift nifty is trading at 24,360. Weak global cues from the US and rising tensions after Operation Sindoor weigh heavily on sentiment. Expect intraday volatility. NIFTY is likely to open around 24,300, while BANKNIFTY may open lower.
Global Market Overview
On May 6, 2025, the US markets closed in the red due to:
- Trade war concerns driven by President Trump’s tariff policies.
- Revised earnings guidance from major US corporations.
- Rising recession risks flagged by the IMF.
This bearish sentiment could spill over into Indian equities. Simultaneously, geopolitical concerns add fuel to the fire.
US FUTURES
U.S. stock futures rose late on Tuesday after it was announced that Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer would meet with China’s top economic official later this week in Switzerland.
Geopolitical Tensions: Operation Sindoor
India’s “Operation Sindoor”, a military response to a terror attack, has escalated India-Pakistan tensions. With ceasefire violations reported, market uncertainty has intensified.
While India stressed non-escalatory intent, the risk-off sentiment is expected to dominate today’s trade.
Corporate Earnings Snapshot
- Palantir met profit estimates but fell 12%.
- Ford rose on earnings but suspended its full-year outlook.
- Bank of Baroda disappointed investors despite profit growth — its stock plunged over 10%.
- Adani Energy posted strong profits.
NIFTY Open Interest Analysis
- Strong resistance at 24,500 and 24,600.
- Key support at 24,300 and 24,000.
- Put-Call Ratio (PCR) at 1.38 reflects mild bullishness, though offset by global tensions
BANKNIFTY Open Interest Analysis
- PCR at 0.89 implies bearish tone, reflecting weakness in PSU banks.
- Expected range: 54,000–56,000
- Breakdown below 54,450 may trigger further sell-off.
FII and DII Activity
- FIIs were net buyers (₹3,794.52 crore) — a positive sign.
- DIIs were net sellers (₹1,397.68 crore) — creating intraday supply pressure.
This divergence might lead to mixed sentiment at open.
⚠️ India VIX Update
- VIX jumped to 19.00 from 18.34, signaling a rise in volatility.
- Expect wider intraday price swings, especially in options.
TECHNICAL ANALYSIS
Based on the news around. the market may be volatile since us futures are rise and operation sandoor. the value area of last week is still valid to watch out. below that market may go down.
first resistance is 24,400 followed by yesterday high.
yesterday, after breakdown from the value area, BN fall continuously. today might be a quiet day or continue the fall, if indo-pak escalation Intensify. If the price retraces back to value area in the coming days, sellers are likely to coming in that area.
✅ Conclusion
The NIFTY and BANKNIFTY premarket analysis for May 7, 2025, points to a volatile start driven by negative global cues and Operation Sindoor’s market impact. While FII inflows and positive Asian trends may offer some support, traders should trade carefully.
