Trade Setup For Aug 4: Nifty Finds Support At 24,400–24,500 Levels
On the upside, a move above 24,775 could change sentiment, analysts said.
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.
Market Recap
Indian stock markets logged their fifth consecutive week of losses amid trade uncertainties with the US and persistent foreign institutional outflows.
The NSE Nifty 50 on Friday settled 203 points or 0.82% lower at 24,565.35 and the Sensex lost 585.67 points or 0.72% to close at 80,599.91. Both the Nifty and Sensex shed 1% this week.
Currency Recap
The Indian rupee closed slightly higher on Friday after opening flat at the beginning of the trading session. The local currency settled six paise stronger at 87.54 against US dollar versus its Thursday closing at 87.6 a dollar.
