Sensex Down 155 Points, Nifty at 24,379; Tomorrow Nifty Prediction

by Editor May 6, 2025

Markets End in Red; Nifty Slips Below 24,400 — What to Expect on Wednesday, May 7

Indian equity markets closed lower on Tuesday, May 6, extending losses for the second trading day of the week.

Weakness across most sectors dragged key indices into the red, with the Nifty 50 ending below the crucial 24,400 mark.

Amidst volatility and selling pressure in broader markets, both midcap and smallcap indices witnessed sharper declines than the frontline indices.

Market Performance Snapshot – May 6, 2025

Nifty 50: Closed at 24,379.60, down 81.55 points or 0.33%
Sensex: Ended at 80,641.07, down 155.77 points or 0.19%
Market Breadth: Out of total traded stocks, 787 advanced, 3,011 declined, and 121 remained unchanged

While the broader market underperformed, a few frontline stocks managed to buck the trend. Stocks such as Hero MotoCorp, Tata Steel, Bharti Airtel, Mahindra & Mahindra (M&M), and Hindustan Unilever (HUL) posted gains.

On the flip side, notable losers on the Nifty included Adani Enterprises, Eternal, Jio Financial, Trent, and HDFC Life.

Sectoral Snapshot

Barring the auto sector, all other sectoral indices closed in the red. The worst hit were public sector banks and real estate companies:

PSU Bank Index: Down 5% — the sharpest decline among all sectors
Realty Index: Fell 3%, reflecting a cautious outlook on interest rate-sensitive sectors
Other sectors: Pharma, consumer durables, media, oil & gas, and power were down by 1–2%
BSE Midcap and Smallcap indices: Dropped over 2% each, indicating significant weakness in the broader market

What Triggered the Selloff?

According to market experts, a combination of global and domestic factors weighed on investor sentiment.

Profit booking, particularly in banking and realty, coupled with ongoing geopolitical concerns, added to the market’s cautious tone.

Key Factors Behind the Decline:

Weak cues from global markets
Profit-taking in key sectors like banking and real estate
Rising caution amid geopolitical tensions, particularly concerns over Indo-Pak border developments
Falling crude oil prices raising worries about slowing global demand
Signs of bearish patterns in technical indicators

Expert Commentary: What Are Analysts Saying?

Aditya Gaggar, Director at Progressive Shares

Gaggar described the session as volatile and largely negative. The markets started the day on a subdued note and saw sharp intraday declines.

Despite some range-bound movement later, the close was firmly in the red. He also highlighted the formation of a bearish divergence and bearish engulfing pattern on the RSI (Relative Strength Index) — two significant technical signals suggesting a potential reversal.

“Nifty is likely to face stiff resistance around 24,500. If that level is not breached, selling pressure could increase. On the downside, immediate support lies near 24,250,” he said.
“The broader market remained under heavy selling throughout the day. Both midcap and smallcap indices underperformed the benchmark, pointing to investor caution beyond the large caps.”

Prashant Tapase, Research Analyst, Mehta Equities

Tapase emphasized that global market weakness added to the downtrend. He pointed out that investors were wary due to growing geopolitical risks and macroeconomic uncertainties.

“Weak global trends, profit-booking in banking, realty, and oil & gas stocks led to the fall. Additionally, tensions along the Indo-Pak border are keeping investors on edge. Meanwhile, falling crude prices are signaling weaker global economic activity, raising concerns about future demand,” he noted.

Sameet Chavan, Chief Analyst, Angel One

Chavan took a more technical view and advised a cautiously optimistic approach for traders. He suggested that despite the fall, the broader trend remains intact as long as key support levels are respected.

“If consolidation continues, traders should maintain a positive bias. Intraday support lies at 24,350 and then at 24,200. For positional traders, support exists in the 24,000–23,800 range, which aligns with the 200-day SMA and the previous bullish breakout zone,” he said.

What to Expect on Wednesday, May 7

The market outlook for Wednesday remains mixed. Traders and investors will be watching whether the Nifty can hold its support around the 24,250 mark or if further downside opens toward the critical 24,000–23,800 levels.

On the upside, a close above 24,500 would be necessary to regain bullish momentum.

Key things to monitor on Wednesday include:

Global market cues, especially from the US and Asia
Any fresh updates on geopolitical developments
Sector rotation — particularly whether the auto sector can continue to outperform
Volatility in midcap and smallcap indices
Technical levels around 24,250 and 24,000 acting as support, and 24,500 as resistance

Investor Strategy: How to Navigate the Volatility

Given the current market setup, investors and traders may consider the following:

Short-Term Traders: Focus on technical levels for intraday entries and exits. Use tight stop-losses to manage risk, especially in high-volatility stocks.
Long-Term Investors: Market corrections can offer opportunities to accumulate quality stocks in outperforming sectors like auto and FMCG.
Avoid Overexposure: Especially to PSU banks and realty in the short term, unless there is a clear sign of trend reversal.
Monitor Breadth: Keep an eye on market breadth. If broader market participation remains weak, any upside may be short-lived.