Stock Market Outlook Next Week, May 4–8, 2026: Sensex, Nifty Likely to Trade Rangebound Amid Crude Surge, FII

The Indian stock market closed the week ended April 30, 2026 on a mixed yet slightly positive note. The Nifty 50 edged up 0.42% to settle at 23,997, while the BSE Sensex gained 0.33% to close at 76,913.

Markets witnessed sharp swings throughout the week, oscillating between gains and losses. Despite this volatility, benchmark indices managed to end in the green, reflecting a balance between earnings optimism and macroeconomic concerns.

Stock Market Outlook Next Week From 4 to 8 May 2026: Sensex, Nifty Weekly Prediction

Sectoral performance remained clearly divided during the week. Midcap IT, pharma and oil & gas stocks outperformed, supported by strong earnings and selective buying interest. On the other hand, PSU banks and financial services stocks came under pressure. Rate sensitivity concerns and sustained institutional outflows weighed on the sector, keeping sentiment cautious.

Key Factor To Drive Stock Market Next Week

Q4 Results Boost Fades as Crude Oil Surge Triggers Concerns

The week started on a strong note, driven by better-than-expected Q4 earnings. This pushed Nifty to an intraweek high of 24,334.70, indicating initial bullish momentum.

However, the rally could not sustain as geopolitical tensions in West Asia resurfaced. Brent crude surged over 7% week-on-week, nearing $114 per barrel, raising concerns over inflation and potential fuel price hikes.

Rupee Hits Record Low

The surge in crude oil prices had a direct impact on the Indian rupee. The currency depreciated to a record low of 95.33 against the US dollar, increasing India's import bill and dampening investor sentiment.

FIIs Continue Selling Pressure

Foreign institutional investors (FIIs) remained aggressive sellers during the week. They offloaded Rs 13,771 crore in the cash segment, while domestic institutional investors (DIIs) provided some support with net purchases of Rs 11,585 crore.

Nifty 50 Next Week: Key Levels to Watch (May 4-8, 2026), Weekly Prediction

The Nifty 50 ended this week (ending April 30, 2026) on a positive note, gaining 0.42% on a weekly basis to close at 23,997.55. "Technically, the index has sustained its position above the 21-day EMA, signaling that the short-term recovery trend remains intact despite intra-week volatility," said Dr. Ravi Singh, Chief Research Officer at Master Capital Services.

"For the coming week, as long as the index holds above this 23,800 pivot, a 'buy on dips' strategy is approachable. On the upside, 24,250 aligned with the 55-day EMA continues to act as a stiff resistance; however, a sustained move above this could trigger a further rally toward 24,750," said Dr Singh.

"Expect the market to remain in a consolidation-to-positive mode as it searches for a stable higher base," he added.

Bank Nifty Weekly Outlook

On the banking front, the outlook remains cautious as per the expert. The Bank Nifty ended this week on a decidedly bearish note, closing at 54,863.35 and dropping 2.19% on a weekly basis amid heavy selling pressure.

"Technically, the index is trading below both its 21-day and 55-day EMAs, signaling that the broader technical posture remains under pressure. For the coming week, the 54,400-54,500 zone stands as the critical immediate demand area. A failure to hold this could accelerate the decline toward the 100-day EMA support," noted Dr Ravi Singh.

On the upside, the 55,500 zone acts as a stiff resistance; however, a sustained move above this could trigger a meaningful recovery towards 56,100.....The index may remain highly volatile, warranting a defensive approach as the sector searches for a stable floor," the expert stated.

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