Nifty, Sensex eye flat start amid tepid global cues, markets may extend consolidation; check key levels here

Most Asian benchmarks are closed for trading on Tuesday, on account of national holidays.

The benchmark indices Nifty 50 and Sensex might see a lacklustre start during the opening bell on Tuesday, May 6, as indicated by the GIFT Nifty index.

At 7.30 am, the GIFT Nifty index eked out minor gains of 2 points to quote 24,562.5.

In the previous session, the frontline indices settled at their highest closing level in 2025, buoyed by recent foreign institutional inflows and an improved sentiment driven by declining crude oil prices. At close, the Sensex settled at 80,797, rising 0.4 percent or 295 points, while the Nifty 50 climbed 0.47 percent or 114.45 points to 24,461.

Going ahead, analysts expected that the Nifty 50 index will extend the consolidation seen over the past six sessions, in the range of 24,600-23,800. A close above 24,600 will open further upside towards December 2024 high of 24,850 in the coming sessions, said experts at Bajaj Broking.

"We are witnessing rotational buying across sectors, which is helping the index maintain its positive tone despite the consolidation. However, participation from the banking sector is crucial, as it could provide the necessary momentum to drive the Nifty toward the 24,800 mark. Participants are advised to maintain a “buy on dips” approach, focusing on stocks demonstrating relative strength," Ajit Mishra, SVP, Research, Religare Broking said.

Volatility is expected to remain elevated amid geo-political conflicts, tariff-related developments and the progress of the Q4 earnings season.

Overnight, the S&P 500 fell to snap its longest streak of gains in 20 years as investors assessed U.S. President Donald Trump's latest tariff announcement ahead of the Federal Reserve's monetary policy decision later this week.

The Dow Jones Industrial Average fell 0.24 percent, the S&P 500 lost 0.64 percent and the Nasdaq Composite sank 0.74 percent.

The dollar gained in early Asian trade after a two-day slide as investors across Asia stayed focused on exacerbated currency appreciations from Taiwan to Malaysia, reclaiming the key 100-mark in trade.

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