Sensex Prediction Today, May 7: Indian equity markets on Wednesday staged a strong late-session rally, with both the benchmark indies Sensex and the Nifty closing sharply higher as global cues turned favourable following a steep drop in crude oil prices after US President Donald Trump claimed progress in negotiations with Iran towards an agreement to end the war.
However, the key question here for Thursday, May 7, is whether the momentum can sustain beyond crucial resistance levels or slip back into consolidation.
The 50-share NSE Nifty rallied 298.15 points, or 1.24 per cent, to end at 24,330.95.
A positive trend in global markets aided the rally in domestic stocks.
Sensex gainers and loser on Wednesday, May 6
Sensex Prediction Today, May 7 by experts
Sensex Prediction Today, May 7 by Vipin Dixena
According to SEBI-registered analyst Vipin Dixena, the Sensex on the intraday timeframe is attempting a breakout from a short-term consolidation, with price reclaiming the 77,250 zone and now approaching immediate resistance near 78,100–78,150.
“The sharp bullish candle indicates momentum expansion, supported by RSI pushing towards the higher zone, suggesting strengthening buying pressure. However, this move is coming after a choppy range, so sustainability above 78,100 is critical for continuation towards 78,500+,” he stated.
He further stated, if the index fails to hold above 77,250 on pullbacks, it could slip back into the prior range and retest lower levels.
“Overall, bias is turning cautiously bullish, but confirmation only comes on a strong hold above resistance,” Dixena concluded.
Sensex Prediction Today, May 7 by Hitesh Tailor
As per Hitesh Tailor, the index, from a technical standpoint, has shown a sharp rebound from lower levels, indicating strength in the ongoing trend.
“Immediate support is placed in the 77,000–77,200 zone, which is likely to act as a strong demand area on dips. On the upside, resistance is seen around 78,800–79,000, where the index may face some profit booking after the recent sharp move,” Tailor stated.
The near-term outlook has turned cautiously positive, supported by strong buying in the latter half and improving sentiment due to favourable geopolitical developments. However, with the index approaching key resistance levels, intermittent volatility and profit booking cannot be ruled out, Tailor said.
“A sustained move above resistance may trigger further upside, while dips are likely to be bought into in the current setup,” the analyst added.
Broader markets and sectoral performance on Wednesday, May 6
Tailor said, the sectoral performance was broadly positive, reflecting strong participation across the board. “Financial Services, Banks, Auto, Realty, and Services emerged as key gainers, showing solid upside momentum. Additionally, Healthcare, Consumer Discretionary, Capital Goods, and Telecom also supported the rally, while Energy, FMCG, and Utilities witnessed relatively subdued or mixed performance, highlighting selective sector rotation,” he added.
Broader markets also rallied with the BSE SmallCap Select index jumping 2.25 per cent and the MidCap Select index by 2.10 per cent. Among sectoral indices, banking, financials, and realty led the rally, while energy and FMCG remained relatively subdued.
US President Donald Trump has suspended “Project Freedom,” to escort ships through the Strait of Hormuz, claiming progress in negotiations with Iran towards an agreement to end the war.
In a post on Truth Social on Tuesday, Trump said, “Great progress has been made toward a complete and final agreement with representatives of Iran.
“Based on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against the Country of Iran and, additionally, the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran, we have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,” Trump said.
Project Freedom was launched on Monday to escort ships, stranded due to the closure of the Strait of Hormuz, to safety.
Trump’s statement on Truth Social came hours after US Secretary of State Marco Rubio announced that Operation Epic Fury, launched on February 28, had concluded as its objectives had been achieved.
“Operation Epic Fury is concluded. We achieved the objectives of that operation. We’re not cheering for an additional situation to occur. We would prefer the path of peace. What @POTUS would prefer is a deal… that is, so far, not the route that Iran has chosen,” Rubio told a press conference at the White House on Tuesday.
Brent crude, the global oil benchmark, tumbled 8 per cent to USD 101.1 per barrel.
Sectorally, Telecommunication jumped 2.94 per cent, followed by Services (2.89 per cent), PSU Bank (2.81 per cent), Realty (2.76 per cent), Bankex (2.64 per cent), Private Banks index (2.51 per cent), Financial Services (2.47 per cent) and Healthcare (1.99 per cent). Energy, FMCG, Utilities and Power were the laggards.
A total of 2,862 stocks advanced, while 1,365 declined and 167 remained unchanged on the BSE.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,621.58 crore on Tuesday, according to exchange data.
On Tuesday, the Sensex dropped 251.61 points or 0.33 per cent to settle at 77,017.79. The Nifty edged lower by 86.50 points or 0.36 per cent to end at 24,032.80.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
