Benchmark indices extended their downward trajectory for the second consecutive session on May 9, as heightened geopolitical tensions overshadowed otherwise constructive global cues. The session kicked off with a gap-down open, dragging the Nifty below the psychologically significant 24,000 level, and the index remained under sustained selling pressure throughout the day. The Nifty 50 ultimately settled at 24,008 levels, registering a decline of 1.1%. On a weekly basis, both the BSE Sensex and Nifty posted losses exceeding 1%, reflecting broader risk-off sentiment.

In the broader market, the BSE Midcap index closed flat, indicating selective participation, while the Small cap index edged lower by 0.3% on Friday’s session, suggesting a cautious undertone in the high-beta space. Sectorally, the Realty index was the worst performer, shedding 2.3%, followed by the Private Bank index, which declined 1.3% amid weak sentiment in financials. On the flip side, pockets of strength emerged in Media, Consumer Durables, Capital Goods, and PSU Banks, with gains ranging from 0.9% to 1.6%, hinting at defensive rotation and value hunting in specific stocks.

Nifty Outlook

Index formed an inverted hammer candle with a long upper shadow with a lower high and lower low signaling profit booking amid escalation of the geo-political conflict.    

Going ahead, we expect Nifty to extend the last 11 sessions consolidation in the range of 24,600-23,800. Nifty have key support at 24,000-23,800 levels being the confluence of the past three weeks' lows and a recent breakout level.

Only a breach below 23,800 could pave the way for deeper correction towards the 200-day EMA, placed near 23,500–23,400.

Volatility is expected to remain elevated, driven by geopolitical developments, tariff-related concerns, and the ongoing Q4 earnings season.

Bank nifty Outlook

Bank Nifty formed a doji candle with a long upper shadow signaling continuation of the corrective decline. It started the session sharply lower amid escalation of the geo-political conflict. Index thereafter consolidated in a range and closed the session lower by 1.42%. Key observation is that the last 11 sessions consolidation is inside a falling channel. We expect it to extend the consolidation in the range of 53,000-56,000. The index has already taken 10 sessions to retrace just 38.2% of the preceding 6 sessions rally signaling a shallow retracement of the previous up move. On the downside, key support is seen between 53,000-53,500 levels being the previous major breakout area and previous gap up area.