Nifty to react to de-escalation between India and Pakistan

The Indian equity markets are poised for a crucial opening on May 12, as geopolitical tensions ease following India and Pakistan's decision to halt military action.

Market Recap:

On Friday, the Nifty opened sharply lower, plunging 338 points amid heightened border tensions. Despite stabilizing in a narrow 200-point band during the session, the index ended the day 266 points down at 24,009. The Sensex also mirrored this weakness, slipping nearly 1%.

While frontline indices remained under pressure, midcaps staged a smart recovery from intraday lows, closing flat. Banking stocks bore the brunt of the sell-off, with the Nifty Bank falling 1.4%, dragged down by ICICI Bank, HDFC Bank, and other heavyweights.

Titan bucked the trend, surging 4% on robust Q4 earnings. Defense-related counters such as ideaForge and Zen Technologies rallied up to 14% amid earlier concerns of escalation at the borders.

Technical Outlook:

Analysts suggest that the Nifty may test key support zones between 23,800–23,600. A breakdown below 23,900 could embolden bears. On the upside, resistance is seen around 24,250–24,300. A breach above this could revive positive sentiment.

The Nifty Bank closed at 53,595, down 1.42%, slipping below its 9-day and 20-day EMAs. Analysts believe the index needs to sustain above 54,600 to resume its upward momentum. Until it regains 55,000, the bias may remain negative.

Stocks to Watch on Monday:

Yes Bank: Sumitomo Mitsui to acquire a 20% stake from SBI and other lenders.

Dr. Reddy’s Laboratories: Q4 results beat expectations across the board.

Swiggy: Loss widened to ₹1,081 crore in Q4, nearly double from the same period last year.

Bank of India: Q4 net profit jumped 82.5% YoY to ₹2,626 crore.

MapmyIndia (CE Info Systems): Reported a 28.2% YoY rise in Q4 net profit at ₹48.6 crore.

ABB India: Q1CY25 net profit up 3.3% YoY at ₹474.6 crore, slightly below expectations.

Novartis India: Q4 profit nearly doubled to ₹29.3 crore; final dividend of ₹25/share declared.

NTPC Green Energy: Appointed Sarit Maheshwari as CEO, effective May 10.

Raymond Lifestyle: CFO Sameer Shah resigns, effective July 31, citing personal reasons.

Investor Watchlist:

Earnings from PVR INOX, SRF, Tata Steel, UPL, Jyothy Labs, Ather Energy, Raymond, Bajaj Electricals, and Zaggle Prepaid will guide near-term market action. Late Friday results from Dr. Reddy’s, Trent, Manappuram Finance, Swiggy, and others will also influence Monday's trade.

Despite the easing of tensions, markets remain volatile. Investors are advised to remain cautious and closely watch key levels for directional cues.