Trade Setup For Aug. 5: Nifty Faces Resistance At 24,850–24,950

The NSE Nifty 50's key resistance was identified at 24,850-24,950 levels, while support was seen at 24,550-24,500, after the benchmark index broke a two-session slump and ended higher on Monday.

"For day traders, 24,550 and 24,500 would act as key support zones, 24,850-24,950 could be the key resistance areas for the bulls," Shrikant Chouhan, head of equity research at Kotak Securities, said in a note.

He added that the sentiment would change, below 24,500. Below this level, traders may prefer to exit their long positions, according to Chouhan.

The Nifty formed a bull candle, which remained enclosed inside previous session price range, signalling pause in the last two sessions' corrective decline. The index finds key support around 24,500–24,400 levels, according to Bajaj Broking Research.

The index is likely to extend consolidation in the range of 24,400-25,000. While only a breach below 24,400 will open downside towards 24,200 levels in the coming sessions, Bajaj Broking said in a note.

"Volatility is anticipated to remain elevated in coming week, driven by key macro triggers including the progress of US-India tariff decision and the Reserve Bank of India rate decision," the brokerage added.

The Bank Nifty formed a small bull candle with shadows in either direction signaling consolidation amid stock-specific action, its key support was identified at 55,200–55,000 levels. On the higher side, key resistance is placed at 56,300-56,500 levels, it added.