The Indian stock market is expected to open on a cautious note on May 7, 2025, following geopolitical tensions between India and Pakistan. The recent military action—Operation Sindoor—by Indian Armed Forces in retaliation to a terrorist attack in Pahalgam has led to market uncertainty and a risk-off sentiment.
Market Overview
GIFT Nifty was trading near 24,359, signaling a weak start for Nifty 50, which closed the previous session at 24,379.60, down by 81.55 points or 0.33%. The BSE Sensex dropped 155.77 points or 0.19% to close at 80,641.07. The formation of a bearish engulfing pattern on the Nifty 50 daily chart indicates a potential short-term downtrend.
Key Technical Levels 
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Nifty 50 Support: Immediate support lies at 24,200. A fall below this may trigger a correction toward 24,050.
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Nifty 50 Resistance: The index faces resistance near 24,530. A breakout above this could shift market sentiment.
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Sensex Outlook: Trading below 81,000 could drag the Sensex further to 80,300 or even 80,000.
Sectoral Insights
Defensive sectors like pharmaceuticals and utilities may outperform during this period of elevated risk. Meanwhile, banking, infrastructure, and real estate stocks could be under pressure due to market volatility and geopolitical overhang.
Investor Strategy
Given the uncertain geopolitical climate, investors are advised to be cautious. It’s essential to monitor developments closely and focus on fundamentally strong stocks in resilient sectors. Swing traders may adopt a level-based approach, while long-term investors should consider portfolio rebalancing if the downtrend continues.
Conclusion
Geopolitical developments are exerting pressure on Indian equities, adding to the mixed global cues. While technical indicators point to short-term weakness, a clear break of key support or resistance levels will offer better direction. Staying informed and flexible in strategy is crucial during such times.
