Sensex, Nifty start on a quiet note amid mixed global cues; India VIX edges up

Markets in a consolidation mode from the past 6-7 days

Indian benchmark indices Sensex and Nifty started slightly lower on May 6, following mixed signals from global markets. Most sectors began the day in the red, with the exception of the auto and consumer segments. Meanwhile, the India VIX, also known as the fear gauge, moved higher, showing that investors are feeling cautious.

Around morning, the Sensex had dropped by 90.44 points or 0.11 percent to stand at 80,706.40. The Nifty was also down by 25.75 points or 0.11 percent, trading at 24,435.40. In terms of market breadth, about 1,093 shares were on the rise, 1,304 shares were falling, and 136 shares remained unchanged.

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The markets have been moving within a narrow range over the past seven days, staying between 24,200 and 24,500 without breaking out in either direction.

“Patterns like these often lead to a sharp move, either upward or downward. If the market closes below the 24,200 mark, there is a possibility it may drop further to 23,800. On the other hand, if it manages to close above 24,500, it could potentially climb to 25,000,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Meanwhile, Mandar Bhojane, Equity Research Analyst at Choice Broking, pointed out that foreign institutional investors (FIIs) and domestic institutional investors (DIIs) continued to buy in the previous session as well.

According to him, this steady flow of investments from both foreign and local players shows that there is underlying confidence in the market, even though global signals remain uncertain.

“Considering the mixed signals and the important resistance levels just ahead, traders should consider taking a cautious approach for now, especially when dealing with positions that involve high leverage. It’s a good idea to book partial profits during rallies and to use tight stop-losses,” he said, offering his trading strategy.

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