Nifty Seen Approaching 25,000 Mark If It Holds Above 24,200, Analysts Advise Buying Amid Dips

Indian Markets Close Flat Amid Lower Oil Prices and Hopes of US-Iran Peace Deal

The Indian stock market benchmarks closed flat on May 7, with the BSE Sensex declining 0.15% to 77,844.52 and the broader NSE Nifty 50 index declining 0.02% to 24,326.65. The decline was offset by lower oil prices, which rose on hopes of a potential US-Iran peace deal.

Market Analysts Remain Bullish

Market analysts are optimistic about the Indian market, citing recent developments from the Middle East that suggest both the US and Iran are looking for a solution to resolve the war. This is seen as a positive sign for domestic equities. However, the gains in domestic markets have been tempered as a deal is still not a reality, while currency pressures continue to deter foreign inflows.

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Technical Analysis Points to a Bullish Trend

Technical analysts are advising traders to adopt a buy-on-dip strategy. On the levels front, the 50 DEMA at 24,185 is expected to cushion any shortcoming, followed by the sacrosanct support of 24,000 in the near period. On the flip side, 24,570-24,600, marked by the confluence of recent swing high close and 100 DEMA, is likely to be seen as the next potential hurdle.

Short-Term Outlook Remains Strong

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While the trend is expected to remain strong in the short term, with the possibility of a rise towards 24,750-24,800, support is placed at 24,200. In the near term, the trend may weaken below this level.

Market Outlook Remains Mildly Positive

Going ahead, the market outlook remains mildly positive if crude prices stay lower and global risk sentiment continues improving. However, markets are likely to remain stock specific and headline driven in the near term, with Q4 earnings, crude oil movement, and Middle East developments continuing to guide investor sentiment.