On Friday, the 50-stock index edged lower by 150.50 points, or 0.62%, to close at 24,176.15.
Rupak De, Senior Technical Analyst at LKP Securities the mood has further deteriorated as the index also moved below the 50 EMA on the intraday timeframe. In addition, the RSI has re-entered a bearish crossover on the daily chart, reflecting weakening momentum, he said. “Overall, the sentiment appears weak, with heavy call writing visible around the 24,200 strike. If the Nifty sustains below 24,200 on Monday, the index could witness further correction towards the 24,050–24,000 zone. On the other hand, a move back above 24,200 may trigger a near-term recovery rally towards 24,350–24,400,” De said.
1. Q4 earnings
While most Nifty companies have already announced their Q4 earnings, results-led action is expected mostly in broader markets. Over 480-BSE listed companies will be announcing their January-March quarter earnings over next six days.
In the Nifty pack are Tata Motors Passenger Vehicles (TMPV), Dr. Reddy’s Laboratories, Bharti Airtel, Cipla, Tata Steel, Power Grid Corporation of India and Bajaj Finserv.
The non-Nifty companies include, Tata Motors, PVR Inox, Tata Power, Nazara Technologies, SAIL, MTAR Technologies, Canara Bank, Fractal Analytics and Indian Hotels Company (IHCL), among others.
2. Iran-Israel war
The United States and Iran are showing little sign of moving toward a resolution to their conflict as hostilities in the Gulf persisted despite a fragile ceasefire. The latest flare-up came as both sides exchanged attacks, while a U.S. intelligence assessment suggested Tehran would be capable of enduring a naval blockade for an extended period.
The past few days have witnessed some of the most intense clashes in and around the Strait of Hormuz since the ceasefire took effect last month. The United Arab Emirates was again targeted in fresh attacks on Friday, underscoring the continued instability in the region.
Meanwhile, Washington is still waiting for Tehran’s response to a U.S.-backed framework aimed at formally ending the conflict before broader negotiations begin on contentious issues such as Iran’s nuclear ambitions. Speaking in Rome on Friday, Secretary of State Marco Rubio said the U.S. expected Iran’s reply later that day. However, an Iranian foreign ministry spokesperson indicated that Tehran was continuing to evaluate the proposal.
3. US markets
Frontline indices on Wall Street ended in the green on Friday amid a recovery in chipmakers that helped offset worries about renewed U.S.-Iran tensions. Moreover, better-than-expected job data in the US cemented positive sentiments.
While Dow 30 ended mildly positive at 49,609.16, gaining 12.19 points or 0.02%, the S&P 500 gained 0.84% (61.82 points) at 7,398.93. The tech-heavy Nasdaq Composite surged 440.88 points or 1.71% to close at 26,247.08.
4. Crude oil
Global benchmark crude oil prices will remain an important factor in determining the direction of domestic markets.
The US WTI crude oil futures ended at $94.68 per barrel on Friday, dropping $0.13 or 0.14% in a single session while Brent witnessed an uptick of 0.19% or $0.19 per barrel to close at $101.29.
5. FII / DII action
The week ended with some serious selling from the Foreign institutional investors (FIIs) who offloaded domestic equities worth Rs 11,072 crore over the five sessions that ended Friday. The foreign outflows in May so far have swelled to Rs 14,231 crore, extending the 2026 exodus to a whopping Rs 2.06 lakh crore.
On Friday, FIIs sold domestic shares to the tune of Rs 4,110.60 crore while domestic institutional investors (DIIs) were net buyers at Rs 6,748.13 crore.
Read more: FIIs sell over Rs 2 lakh crore worth of Indian equities in 2026. What lies ahead?
6. Technical triggers
Decoding the technical charts Dr. Ravi Singh, Chief Research Officer from Master Capital Services said the index has managed to reclaim and sustain its position above the 21-day EMA and the 50-day EMA , signaling that the recovery remains intact despite persistent FII selling and intra week volatility. “For the coming week, as long as the index holds above the 24,000 pivot, a “Buy on dips” strategy is approachable. On the upside, 24,500 aligned with recent supply zones continues to act as stiff resistance, however, a sustained move above this could trigger a further rally toward 24,800. The market may remain in a consolidation to positive mode as it attempts to build a stable floor around the 24,000-24,500 zone,” Dr. Singh said.
7. Rupee Vs dollar
The Indian rupee strengthened this week on the back of nascent optimism regarding a U.S.-Iran peace deal but renewed hostilities threatened to yet again sway the outlook for Asian currency. The currency declined 0.2% from the previous close while the 1-month implied volatility for the dollar-rupee rose to 5.7%, the highest since mid-April.
Price action on Friday had a “swing-like feel to it with support (for USD/INR) consistently emerging around 94.40 while state-run banks were active around the 94.70 mark,” a trader at a foreign bank said.
The rupee declined nearly 94.70 to the dollar before paring losses to end the session at 94.40, up 0.4% week-on-week.
8. Stocks in news
Expect stock-specific action in at least 20 stocks on account of corporate actions by various companies. The next five days will be ex-date and record dates for dividend payment, bonus issue, stock split and amalgamation.
Among the stocks that will trade ex-dividend will be State Bank of India (SBI), Manappuram Finance, Premier Energies, Oberoi Realty, Anand Rathi Wealth, Aptus Value Housing Finance India, Indian Energy Exchange (IEX).
There will be record dates for bonus issues of Aptus Pharma, Biogen Pharmachem Industries and Dev Labtech Venture. Dev Labtech Venture’s shares will trade ex-split on May 15 while Gujarat State Petronet’s record date is on May 12 for amalgamation.
(Inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
