The Indian stock market displayed remarkable resilience on May 7, 2025, in the face of geopolitical developments. Following the announcement of Operation Sindoor, where the Indian Armed Forces executed precision strikes on terrorist camps in Pakistan-occupied Kashmir (PoK), the Nifty 50 opened with a sharp 150-point gap-down. However, within the first 5 minutes, the index recovered swiftly and turned positive, showcasing strong investor confidence and an underlying bullish sentiment.
📰 Geopolitical Context: Operation Sindoor’s Market Impact
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Initial fears of escalation led to a gap-down opening.
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Clarity came later that India targeted only terrorist infrastructure, avoiding civilian or military casualties.
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This de-escalated concerns of prolonged geopolitical tension, prompting a sharp recovery.
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The market turned range-bound post-recovery, signaling stability and investor composure.
🔍 Technical Analysis Overview
Let’s break down the technical setup for Nifty on 8th May 2025:
🔸 Key Levels to Watch:
| Level | Significance |
|---|---|
| 24800 – 25000 | Upside target zone if 24,500 is decisively crossed and sustained. |
| 24500 | Major Call OI buildup – key resistance. Breakout level for bulls. |
| 24490 | Bullish threshold as per 200 Hull MA on 30-min chart. |
| 24350 | Bearish threshold as per 200 ALMA. Below this, weakness may creep in. |
| 24250 | Breakdown level. Below this, expect selling pressure and long unwinding. |
| 23970 | Strong support zone. Buyers expected to defend this level aggressively. |
📊 Technical Indicators Summary
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Hull Moving Average (200 on 30-min):
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📈 Bullish above 24,490
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Suggests that any close above this could lead to a sharp upmove.
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Arnaud Legoux Moving Average (ALMA 200 on 30-min):
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📉 Bearish below 24,350
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Indicates cautiousness if price slips below this level.
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Open Interest Analysis:
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Strong Call OI at 24,500, showing a potential breakout point.
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If breached, expect targets of 24,800 – 25,000 in coming sessions.
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Put writers are active around 24,300 – 24,400, offering short-term support.
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🧠 Market Sentiment & Strategy
Despite the initial shock from Operation Sindoor, market sentiment has shown signs of stabilization and strength. The fact that:
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No civilians or military installations in Pakistan were targeted,
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The operation was controlled and surgical,
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And there’s no sign of military retaliation,
...all point to limited geopolitical fallout, which is typically bullish for equities in the medium term.
📌 Trading Strategy for 8th May 2025:
📈 If Nifty sustains above 24,500:
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Go long with targets of 24,800 and 25,000.
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Use 24,420 – 24,450 zone as a stop-loss (dynamic based on session).
📉 If Nifty breaks below 24,250:
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Look for short opportunities.
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Target 24,000 first and 23,970 as strong support.
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Watch for long unwinding in derivative positions.
📅 Conclusion: What to Expect Tomorrow?
The market’s quick recovery post-news suggests investors are not panicking, but rather reassessing the situation rationally. With strong technical levels in place and improving sentiment, the bias for Nifty remains bullish above 24,490, while 24,250 serves as the key pivot for downside risk.
Stay nimble, respect the levels, and let the price action guide your trades.
