Stock Market Outlook Today, May 5, 2026: Sensex, Nifty Likely to Stay Range-Bound Amid Post-Election Verdict

Indian equity markets ended Monday's session on a positive note despite witnessing sharp intraday swings, as investors reacted to ongoing state election developments and global cues. The volatility was visible throughout the day, with indices slipping from higher levels due to profit booking, but steady support in the latter half helped benchmarks close in the green.

Stock Market Prediction Today, 5 May 2026 After Assembly Elections Results 2026

The BSE Sensex rose 355.90 points, or 0.46%, to settle at 77,269.40, while the Nifty 50 gained 121.75 points, or 0.51%, ending at 24,119.30.

Sector-wise, the rally was led by Realty, Metal, Healthcare and Pharma stocks, which saw strong buying interest. However, weakness in IT, Media and banking stocks-both PSU and private-capped the upside and acted as a drag on the broader market.

Market sentiment remained influenced by a mix of domestic and global factors, including cooling crude oil prices and expectations of political stability following early election trends.

Will BJP Win Impact Stock Market Today?

"Markets are expected to sustain their gradual upmove, with near-term direction anchored around three key drivers - softer crude oil prices, strong domestic data (record GST collection & healthy April auto sales growth), and political clarity post state election outcomes. A BJP win in 3 out of five state assembly elections is likely to reinforce political stability and provide a sentiment boost," said Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd.

Nifty Prediction Today for May 5; Check Technical Outlook

Technically, Nifty formed a small bullish candle with a long upper shadow on the daily chart, indicating volatility at higher levels but maintaining a positive bias. The index continues to consolidate near its 20-day exponential moving average.

"In line with our expectations Nifty is witnessing consolidation in the broad range of 23,600-24,400 amid stock specific action as we progress through the quarterly earning session," Bajaj Broking Research

A sustained move above Monday's high of 24,290 could push the index towards the upper end of the range near 24,400. On the downside, a close below the recent support zone around 23,800 may trigger further weakness towards 23,600 levels.

"Short-term support is positioned around 23,600-23,500 range being the confluence of the recent major low and 38.2% retracement of the last 3 weeks pullback (22,183-24,601)," Bajaj Broking Research.

Bank Nifty Outlook Today

The Bank Nifty index also reflected caution, forming a small bearish candle with a long upper shadow, signalling selling pressure at higher levels.

"Overall, we expect the Bank Nifty to extend consolidation in the broad range of 54,000-57,500 amid stock specific action as we progress through the quarterly earning session of the banking stocks," stated Bajaj Broking Research.

A breakout above 55,602 could lead to a short-term pullback towards 56,500 levels. However, immediate support is seen in the 54,500-54,000 range.

A decisive breach below 54,000 may accelerate the downside, dragging the index towards 52,500 levels, which marks a key gap zone from early April.

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