Nifty Trade Setup for May 8: Can Nifty break 24,600 and spark bullish momentum?

Markets remained on edge Wednesday as the Nifty 50 opened sharply lower by 147 points, reacting to geopolitical jitters after India launched ‘Operation Sindoor’—a targeted strike on terror camps following the April 22 attack in Pahalgam, Jammu & Kashmir.

However, the benchmark staged an impressive intraday recovery, rebounding over 200 points from early lows. Despite the volatility, Nifty managed to close in the green, gaining 35 points to end at 24,414, holding firm above the 24,400 mark.

Key Drivers of Market Resilience

Dalal Street’s comeback was supported by strong Foreign Institutional Investor (FII) inflows, with ₹43,940 crore pumped into equities over the past 14 days, providing critical market cushioning. Broader indices outshone the benchmarks—Nifty Midcap 100 climbed 1.6% while Nifty Smallcap 100 rose 1.38%.

Shares of Tata Motors surged 5% as investors cheered progress on the India-UK Free Trade Agreement (FTA) and a near-unanimous shareholder nod for splitting its commercial vehicle business into two listed entities.

Meanwhile, profit booking dragged defence stocks lower—Mazagon Dock Shipbuilders tumbled nearly 5%, while Cochin Shipyard and Garden Reach Shipbuilders slipped 2-3%.

Sentiment was buoyed by India and the UK finalizing the long-awaited FTA, which is expected to boost bilateral trade and benefit sectors like textiles, auto, pharma, agri-products, and gems & jewellery, according to Motilal Oswal’s Siddhartha Khemka.

Looking ahead, traders will watch for progress on the US-India trade deal, upcoming corporate earnings, key US economic data, and ongoing geopolitical developments. “These factors could trigger short-term consolidation or directional moves depending on how they evolve,” Khemka added.

Technical Levels to Watch

Nagaraj Shetti (HDFC Securities) warns that a break below 24,200 could spark a short-term correction, while a decisive move above 24,600 may revive bullish momentum.

Rupak De (LKP Securities) notes Nifty is stuck in a consolidation zone, struggling to break past the 61.8% retracement from its all-time high of 26,277 down to the recent low of 21,743. “A breakout above 24,550 could pave the way for a fresh rally; below 24,200, a decline toward 24,000 is possible,” he said.

Ajit Mishra (Religare Broking) flagged key support at 24,100; breaching it could drag the index toward 23,800.

Devarsh Vakil (HDFC Securities) sees resistance at 24,500–24,590, with immediate support near 24,200.

Investors are also eyeing earnings announcements Thursday from L&T, Britannia, Titan, Pidilite, Biocon, Bharat Forge, Union Bank, and Canara Bank, which could further influence sentiment.

Both domestic and foreign investors remained net buyers in Wednesday’s session, underscoring confidence despite geopolitical uncertainty.