Pre-Market Update: Sensex, Nifty 50 Likely To Open Muted On May 7 Amid U.S.-Iran Tensions; Bajaj Auto, Paytm, Blue Star In Focus

Pre-Market Update at 7:34 AM: The Indian benchmark indices, Sensex and Nifty 50, are likely to open on a muted note on Thursday as investors remain cautious due to the ongoing U.S.-Iran conflict and fluctuating crude oil prices.

Gift Nifty hovered around the 24,461 mark, trading at a discount of nearly 13 points compared to the previous close of Nifty futures, indicating a subdued start for domestic equities. Asian markets traded mixed, while Wall Street ended higher overnight, with the S&P 500 and Nasdaq closing at fresh record highs.

U.S. President Donald Trump said the conflict involving Iran could end soon, as Washington pushes for a deal to ease tensions related to the Strait of Hormuz and Tehran’s nuclear ambitions. Meanwhile, Iranian Foreign Ministry spokesperson Esmaeil Baqaei said the U.S. proposal is still under review by Tehran.

Oil prices stabilised after sharp declines in the previous session. Brent crude futures rose 0.78 per cent to USD 102.06 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.96 per cent to USD 95.99 per barrel.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 1.18. On the Put (PE) side, significant open interest among the nearest strikes is concentrated at 24,000, suggesting this level may act as key support for the day.

On the Call (CE) side, major open interest addition was seen at the 25,000 strike during the previous trading session, indicating this level may act as strong resistance. In the near out-of-the-money segment, high open interest is concentrated at the 24,500 and 25,000 strikes.

Technically, the Nifty 50 has turned bullish after breaking out of its recent consolidation range and bullish flag pattern with strong volumes. Immediate support is placed near the 50-DMA zone around 24,000, which also acted as a strong buying area during Wednesday’s session.

On the upside, a decisive move above 24,368 could strengthen momentum further and open the path towards 24,720–24,750, coinciding with the 61.8 per cent Fibonacci retracement level of the February-to-April decline. If the index sustains above this zone, the next major upside target is seen around 25,006.

However, a close below the 50-DMA may weaken the current setup and drag the index back into consolidation.

Major companies scheduled to announce results include BSE, Pidilite Industries, Britannia Industries, Bajaj Holdings & Investment, Lupin, Bharat Forge, Dabur India, Biocon and Coromandel International.

No stock is under the F&O ban for May 7.

On May 6, Foreign Institutional Investors (FIIs) were net sellers after buying equities worth Rs 5,834.90 crore. Domestic Institutional Investors (DIIs) also bought shares worth Rs 6,836.87 crore during the session.

The Indian stock market ended sharply higher on Wednesday, supported by late-session buying amid reports that the U.S. and Iran were nearing a deal to end their conflict.

The Sensex jumped 940.73 points, or 1.22 per cent, to close at 77,958.52, while the Nifty 50 gained 298.15 points, or 1.24 per cent, to settle at 24,330.95.

The U.S. stock market closed strongly higher on Wednesday, with the S&P 500 and Nasdaq hitting fresh record highs amid easing Middle East tensions and strong gains in AI-related stocks.

The Dow Jones Industrial Average climbed 1.24 per cent to close at 49,910.59. The S&P 500 advanced 1.46 per cent to 7,365.09, while the Nasdaq Composite surged 2.03 per cent to settle at 25,838.94.

Among major movers, Nvidia jumped 5.68 per cent, while Advanced Micro Devices (AMD) soared 18.64 per cent to a record high. Intel gained 4.46 per cent, Apple rose 1.16 per cent, and Tesla added 2.37 per cent.

Gold prices steadied after recording their biggest daily advance since late March. Spot gold was steady at USD 4,692.98 an ounce, while silver prices rose 0.1 per cent to USD 77.44 after surging 6.2 per cent on Wednesday.

Disclaimer: The article is for informational purposes only and not investment advice.

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