Index Update:  The Nifty 50 Index closed near 23,643.50, down 0.19% in the session, while remaining below its 50-day SMA near 23,799.35, reflecting a mildly weak near-term structure. Recent price action indicates consolidation after the recent recovery attempt, with the index facing pressure near higher levels. The 14-day RSI near 45.13 remains below the neutral zone, suggesting softer momentum conditions. Immediate support is placed around 23,500–23,300, while resistance is seen near 23,850–24,100. A sustained move beyond these levels could influence the index’s next directional trend.

Macro Update: India’s unemployment rate rose to a six-month high of 5.2% in April 2026, reflecting pressure from rising energy prices, rupee weakness, and softer purchasing power. Rural unemployment increased amid macroeconomic challenges, while urban unemployment eased slightly. Lower labour force participation also indicated cautious employment conditions across the economy.

Top Market Movers: On Friday, Tata Motors Passenger Vhcls Ltd (NSE:TMPV) led the gainers with a 5.25% increase, closing at INR 356.55 followed by Dr. Reddy’s Laboratories Limited (NSE: DRREDDY)  up 2.54% at INR 1,336.70 and Infosys Limited (NSE: INFY) which rose 2.19% to INR 1,119.00. On the downside followed Hindalco Industries Limited (NSE: HINDALCO) saw the largest drop, falling 3.24% to INR 1,067.50 followed Nestlé India Limited (NSE: NESTLEIND) down 1.99% to INR 1,430.50 and Tata Steel Limited (NSE: TATASTEEL), which dropped 1.94% to INR 216.84.

Commodity Update: The U.S. dollar strengthened on Friday after stronger-than-expected U.S. inflation and retail sales data increased expectations that the Federal Reserve could keep interest rates elevated for longer. Investor focus also remained on President Donald Trump’s China visit, where discussions around trade, artificial intelligence, and geopolitical tensions involving Iran stayed in focus. Gold declined 1.26% to USD 4,625.90, silver dropped 3.89% to USD 82.01, and copper fell 1.40% to USD 13,783.50. Brent crude rose 0.57% to USD 106.32 amid ongoing concerns over Strait of Hormuz shipping disruptions.

Our Stance: Market sentiment remains cautious as the Nifty 50 trades below key moving averages amid softer momentum indicators and macroeconomic pressures. Elevated crude oil prices, rupee weakness, and rising unemployment may continue to weigh on near-term market direction. However, stock-specific opportunities may emerge supported by earnings resilience and sectoral rotation.

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