Indian benchmark stock indices, Sensex and Nifty, concluded Monday's trading session higher, recovering from earlier profit booking. Investor sentiment was largely uplifted by a favorable election outcome in West Bengal and better-than-expected fourth-quarter earnings reports. These domestic factors helped markets largely look past ongoing concerns related to the West Asia region.
At the close of trading on May 4, 2026, the Sensex registered a gain of 355.90 points, or 0.46 percent, to settle at 77,269.40. Concurrently, the Nifty advanced by 121.75 points, or 0.51 percent, ending the day at 24,119.30.
Vinod Nair, Head of Research at Geojit Investments, noted that intermittent profit booking was observed amidst uncertainties surrounding the US Project Freedom initiative aimed at reopening the Strait of Hormuz. Despite the potentially lengthy resolution path, optimism regarding gradual progress persists. Nair highlighted that crude oil prices remaining below $110 per barrel offered some immediate comfort to the market.
Geopolitical & Oil Trends to Dictate Future Market Direction
Looking ahead, analysts concur that the broader market direction will be significantly influenced by geopolitical developments and global oil price trends. These factors have a direct impact on crucial economic indicators such as inflation, interest rates, the value of the rupee, and the profit margins of corporations.
Nifty's Immediate Outlook
Nilesh Jain, VP-Head of Technical and Derivative Research at Centrum Finverse Ltd, observed that the NSE barometer opened with a gap-up but failed to maintain momentum above the 24,200 mark, eventually closing near its 50-day moving average (DMA) around 24,110.
- Immediate Support: Nifty's psychological support is seen at 24,000, followed by the 21-DMA at 23,900.
- Resistance: A decisive break above 24,200 is crucial for an upward movement towards 24,500.
Jain also pointed out that volatility, measured by the index, eased by nearly 1 percent over the week, closing around 18. Further cooling of volatility could bolster bullish momentum. The overall structure for Nifty remains positive as long as it holds above 23,800, though some near-term consolidation cannot be ruled out.
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, identifies immediate resistance for Nifty in the 24,250-24,300 range. A sustainable move past this zone could extend Nifty's pullback to 24,450, and potentially 24,600, in the short term. On the downside, immediate support for Nifty is situated in the 23,980-23,950 zone.
Sensex Outlook for Day Traders
Shrikant Chouhan, Head Equity Research at Kotak Securities, suggests that the short-term market texture is presently non-directional and is likely to continue this trend. For day traders, the 77,000 level or the 20-day Simple Moving Average (SMA) will serve as key support zones for the Sensex.
- Upward Momentum: Above these support levels, the market could sustain its positive momentum towards 77,700–78,000.
- Downward Retest: Conversely, a drop below the 20-day SMA or 76,800 could see the market retesting levels of 76,500–76,300.