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Asian stock markets edged higher on Thursday, buoyed by supportive global cues and steady US interest rates. Still, Indian equities may face a cautious start as domestic volatility and geopolitical tensions weigh on sentiment.

While Wall Street’s strong rebound and a positive tone from the US-UK trade deal offer some relief, India’s Nifty 50 continues to show signs of weakness. If key support levels are breached, downside risks loom.

The Nifty 50 ended lower by 0.6% on May 8, reversing earlier gains as markets reacted to escalating tensions between India and Pakistan.

The drop was accompanied by above-average trading volumes and a spike in the India VIX, signaling rising investor anxiety.

According to technical analysts, the index has breached the intraday support of 24,200.

A decisive close below this level could trigger a further decline toward the 24,000–23,850 zone.

On the upside, the 24,400–24,450 band remains a crucial resistance area to monitor.

Nifty outlook for May 9: Weak bias, elevated volatility

• Gift Nifty trades 0.22% lower, pointing to a muted open for Indian markets.
• Volatility remains a concern with the India VIX climbing, suggesting choppy trade ahead.
• Key support zone: 24,000–23,850
• Resistance area: 24,400–24,450

Despite domestic concerns, global sentiment remains relatively supportive.

On Wall Street, stocks surged after former US President Donald Trump announced a new trade framework with the United Kingdom — the first significant deal following the rollout of steep tariffs earlier this year.

The Dow Jones rose 532 points, the S&P 500 gained 1.3%, and the Nasdaq Composite added 1.8%, reflecting strong investor enthusiasm.

Asia-Pacific markets trade mostly higher

• Japan’s Nikkei 225 rose 0.41% to close at 36,928.63.
• South Korea’s Kospi added 0.22%, while the Kosdaq gained 0.94%.
• Australia’s ASX 200 edged up 0.16% to 8,191.7.
• Hong Kong’s Hang Seng Index climbed 0.37%, and China’s CSI 300 rose 0.56% to 3,852.90.
• Topix Index in Japan ended flat.

The US Federal Reserve held interest rates steady, as widely expected, maintaining its benchmark borrowing rate in the 4.25%-4.5% range.

Fed Chair Jerome Powell acknowledged that continued high tariffs could increase inflation and dampen economic growth in the long run.

Key takeaways for traders and investors:

• Global markets remain resilient, offering short-term support to Asia equities.
• Indian markets face downside risk unless Nifty sustains above key levels.
• Volatility could persist due to geopolitical risks and high domestic VIX.
• Crypto and commodities could see further movement following the Fed’s stance and US-UK trade deal announcements.

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