Nifty closes flat as large caps continue to lag despite lower oil prices

Broader markets continue to dominate

May 07, 2026

Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets, both in India and globally.

In our latest episode of In The Money by Zerodha, we shift focus to the two most understated — yet arguably most important — aspects of scalping: position sizing and psychology. No strategy works without the discipline to size correctly and the mental fortitude to execute under pressure.

We walk through a practical framework for fixing your daily risk budget, translating it into capital requirements, and dynamically adjusting position size across S1, S2, and S3 throughout the trading day. We also explain why margin requirements should never be the basis for your risk management — that system was built to protect brokers, not optimise your trading.

In the psychology segment, we cover the concept of tilt — what it is, why it happens, and how to manage it before it spirals into significant losses. As discussed in the video, the ideal mental state for a scalper is emotional neutrality: neither euphoria on wins, nor distress on losses.

Check out In The Money

Markets Today

Nifty opened with a 68-point gap up at 24,399, tracking stable global cues. The index saw a volatile start, oscillating between the 24,330–24,400 zone within the first hour.

Selling pressure intensified through the late morning session, dragging Nifty toward the 24,285–24,290 range by around 11:30–11:45 AM, where it marked the day’s low.

However, the index staged a sharp recovery post noon, rebounding strongly from lower levels. Momentum accelerated around 12:30 PM, triggering a sharp spike toward the 24,450–24,480 zone, marking the day’s high.

The rally failed to sustain, with Nifty slipping back toward the 24,350 zone and trading largely range-bound between 24,350 and 24,380 through the afternoon. In the final hour, the index briefly dipped toward 24,300 before recovering slightly to close at 24,326.65.

The session was marked by sharp intraday swings, a strong midday rebound, and lack of follow-through at higher levels.

Nifty ended nearly flat at 24,326, down just 4 points, while Bank Nifty edged up 0.12% to 56,047. Sensex slipped 0.15%, but market breadth remained strong with 331 advances against 168 declines. VIX was largely unchanged, easing 0.36% to 16.62, indicating limited panic despite late selling pressure. Midcaps continued to outperform sharply, while largecaps remained largely subdued.

Sectoral Indices Performance

Auto ripped 1.93%, leading the charge. Energy added 0.82%, and Realty gained 0.63% after yesterday’s bank-led rally cooled off. IT dropped 0.77%, FMCG fell 0.76%, and PSU Banks shed 0.49%. Nine of twelve sectors stayed green, but the losers were the defensives.

Winners & Losers

Midcaps stole the show, surging 1.67% to 14,551, while large-caps went nowhere. That’s the widest divergence in weeks, breadth strength wasn’t just in large names, it was concentrated lower down. Advances outnumbered declines two-to-one in the Nifty 500.

Momentum Screener

Global Markets

Commodities

Crude crashed another 3.08% to ₹8,739, now down 12% in three sessions. Gold inched up 0.48%, silver jumped 2.91% to ₹2,60,630. Lower crude is a structural tailwind for India’s deficit and inflation, but market participants are no longer reacting to it with much conviction.

Bond Yields & Currency

India 10Y yield at 6.925%. US 10Y at 4.36%, unchanged. The rupee strengthened 0.19% to 94.30 as the dollar lost ground. Bond markets are calm, and the currency move suggests the oil crash is beginning to filter through.

FII / DII Flows

Here’s the trend of FII-DII activity from the last 5 days:

Thematic Indices

Tijori’s niche indices, where pockets of the market beyond standard sector baskets are sorted by today’s move. You can also track the Promoter buying and other interesting stuff, like Capex activity by the companies in the Tijori App’s idea dashboard

Change in OI for the day

The following is the change in OI for Nifty contracts expiring on 12th May:

The maximum Call Open Interest (OI) is observed at 24,500, followed by 24,400 & 24,800, indicating potential resistance at the 24,500 -24,600 levels.
The maximum Put Open Interest (OI) is observed at 24,000, followed by 24,200 & 24,300, suggesting support at 24,200-24,100.

Note: OI is subject to multiple interpretations; however, generally, an increase in Call OI indicates resistance in a falling market, while an increase in Put OI indicates support in a rising market.

Source: Sensibull