Trade Setup For Aug 4: Nifty Finds Support At 24,400–24,500 Levels

The NSE Nifty 50's key support is seen at 24,400–24,500 levels, after the benchmark index slipped by around 200 points on Friday, according to analysts.

"Index has key support around 24,500–24,400 levels being the confluence of the prior swing low, the 100-day EMA and key retracement level of the previous up move (23,935-25,669)," Bajaj Broking Research said in a note.

On the upside, a move above 24,775 could change sentiment. Above this level, the market could retest the 50-day simple moving average or reach the 25,050–25,150 zone, according to Amol Athawale, VP-technical research, Kotak Securities.

"We believe that the short-term market outlook is weakening; however, a fresh selloff is possible only if the 24,500 level is broken below. If that happens, the market could slip to around 24,300. Further downside may continue, potentially dragging the index down to 24,200–24,150," he said.

The Bank Nifty formed a bear candle which remained enclosed inside previous session price range signaling consolidation with downward bias, according to Bajaj Broking. Furthermore, it key support was identified at 55,500–55,000 levels. On the higher side, key resistance is placed at 56,300-56,500 levels, it added.