Trade Setup for Nifty 50 Amid India-Pakistan Tensions; Stocks to Watch on Monday, May 5, 2025

As we begin a today's buying and promoting week, the Indian inventory market is predicted to open on a cautious word amid escalating geopolitical tensions and blended international cues. The Nifty 50 index closed final week close to the 22,500 level, witnessing some volatility because of FII outflows, inclined global sentiment, and growing concerns across the India-Pakistan border situation.

As we kick off a new trading week, buyers in India are cautiously searching each global cues and regional geopolitical developments. The inventory marketplace's trajectory on Monday, May 6, 2025, will be shaped via the use of numerous key elements—from Wall Street’s combined close to escalating tensions amongst India and Pakistan. Here’s your whole change setup and a list of 8 shares to buy or sell due to the fact the week starts.

Here’s a whole trade setup for Monday, such as key stages to study, macro triggers, and eight inventory tips to buy or sell today.

Key Market Triggers for Monday

1. India-Pakistan Tensions

Reports of stepped forward bypass-border interest along the LoC have sparked investor difficulty. Historically, geopolitical tensions have induced quick-term corrections within the marketplace. Traders must keep an eye constant on any critical traits or authorities statements.

2. Global Market Cues

US markets ended Friday blended after tech income failed to improve regular sentiment. Asian markets also are displaying a muted begin this Monday, with caution winning in advance of the USA Fed announcement and crude oil price fluctuations.

3. Crude Oil and Rupee Movement

Brent crude is hovering close to $88 per barrel, raising issues for India’s import invoice. A weakening rupee can also want to located strain on foreign places buyers and impact sectors collectively with aviation, oil & gas, and FMCG.

4. FIIs and DIIs Flow

Foreign Institutional Investors (FIIs) were net dealers for 5 consecutive sessions, at the identical time as Domestic Institutional Investors (DIIs) hold to aid the market. This tug-of-war need to define the close to-term fashion.

Nifty 50 Technical Outlook

• Support ranges: 22,three hundred and 22,a hundred
• Resistance stages: 22,600 and 22,850
• The Nifty fashioned a spinning top candle on the every day chart, signaling indecision. If Nifty breaches 22,three hundred on the downside, it is able to trigger similarly promoting pressure. A breakout above 22,600 have to reignite bullish momentum.

Stocks to Buy or Sell Today (May five, Monday)

Here are the pinnacle eight trading thoughts primarily based on technical indicators and facts glide:

Stocks to Buy

• Infosys (INFY)
• Buy above: 1,410
• Target: 1,460
• Stop Loss: 1,385
• Positive momentum post income; technical breakout on charts.
• Tata Motors (TATAMOTORS)
• Buy above: 1,080
• Target: 1,one hundred twenty
• Stop Loss: 1,0.5
• Strong quantity assist and bullish fashion in car sector.
• Axis Bank (AXISBANK)
• Buy above: 1,100 and fifty
• Target: 1,one hundred 90
• Stop Loss: 1,a hundred thirty
• Stable Q4 effects and banking quarter resilience.
• Coal India (COALINDIA)
• Buy above: 470
• Target: 495
• Stop Loss: 455

Seasonal name for uptick and dividend statement capability.

Stocks to Sell

• Zee Entertainment (ZEEL)
• Sell underneath: 142
• Target: 134
• Stop Loss: 146
• Ongoing merger uncertainties and susceptible fundamentals.
• Tech Mahindra (TECHM)
• Sell under: 1,one hundred forty
• Target: 1,a hundred
• Stop Loss: 1,one hundred sixty 5
• Weak outlook in telecom vertical.
• IndusInd Bank (INDUSINDBK)
• Sell beneath: 1,370
• Target: 1,330
• Stop Loss: 1,390
• Profit booking in all likelihood after sharp rally.
• JSW Steel (JSWSTEEL)
• Sell beneath: 885
• Target: 850
• Stop Loss: 900

Global metal charge strain and vulnerable Chinese call for.

Strategy for Monday

Traders must undertake a careful technique. If Nifty sustains above 22,600 inside the first half of of the session, a rally towards 22,750 is feasible. However, any terrible headline related to India-Pakistan tensions may also need to lead to intraday volatility.

F&O Traders: Use tight save you losses; maintain in mind straddle/strangle strategies round key degrees.

Investors: Focus on defensives like pharma and FMCG amid geopolitical uncertainty.

Final Thoughts

Traders need to adopt a cautious approach amid geopolitical dangers and upcoming macroeconomic data releases. While select shares are showing technical strength, a defensive technique may additionally paintings higher early within the week. Watch for place rotation and use strict stop losses in all positions.