Trade Setup for May 2: Nifty braces for global cues, US GDP shock, India-Pak tensions

Markets remained cautious ahead of the long weekend, with the Nifty 50 witnessing a subdued session on Wednesday, trading within a narrow 100-point band before closing marginally lower at 24,334 — down just 2 points.

The lackluster mood reflected investor caution as they awaited key global triggers. Friday's trade will be influenced by two days’ worth of global cues, with a keen eye on the US GDP data, which signaled a contraction. While this could rattle investor confidence, strong earnings from global tech giants — Meta, Microsoft, and Cognizant — may offer some cushion. Upcoming results from Apple and Amazon are also expected to play a role.

Market Highlights:

Midcap and Smallcap indices underperformed the benchmark; Nifty Midcap 100 slipped 0.85%, and Smallcap 100 dropped 1.73%.

36 out of 50 Nifty stocks ended in the red, reflecting weak market breadth.

Top Gainers: A B Infrabuild (↑10.61%), Vishal Mega Mart (↑10%), Global Vectra Helicorp (↑10%), Jet Freight Logistics (↑9.98%), Ceat (↑8.87%).

Tyre stocks rallied after Ceat posted a strong Q4 and projected double-digit growth in FY26, thanks to its premium tyre segment.

Sectoral Snapshot:

Gainers: Real Estate, Pharma, Healthcare.

Losers: PSU Banks, Media, Financial Services.

Defence stocks snapped their two-day winning streak — HAL fell nearly 3%, BEL declined over 1%.

Sentiment Drivers:

Despite geopolitical tensions between India and Pakistan, domestic sentiment was buoyed by robust April GST collections — the highest ever — and strong institutional flows. Both FIIs and DIIs have been net buyers over the past three sessions, each pumping over ₹7,500 crore into the markets.

On the technical front, analysts say the Nifty remains bullish, staying above key moving averages. Immediate support lies at 24,150, with deeper support at 23,870. Resistance is seen around 24,450–24,500, with a breakout above 24,550 potentially triggering a fresh rally.

Stocks to Watch on Friday:

NMDC Ltd.: Revises prices of lumps and fines for the first time in four months, effective May 1.

NTPC Green: Commissions 75 MW out of the 500 MW under its JV with IRCON Renewable.

NBCC: Wins ₹95.66 crore project from Sushma Swaraj Institute of Foreign Service.

MobiKwik: Arm Zaak ePayment receives RBI’s nod to operate as an online payment aggregator.

Paytm: Subsidiary Paytm Cloud Technologies incorporates ‘Paytm Arab Payments L.L.C.’ in the UAE.

Nitco Tiles: Secures ₹111 crore order from Prestige Estates Projects for tiles and marble supply.

As markets resume trading on Friday after the holiday break, all eyes will be on how investors digest the US economic data, global earnings, and local macro cues.