Trade Setup For May 2: Nifty 50 Faces Immediate Resistance At 24,400 Levels

The NSE Nifty 50, which settled in the red on Wednesday after two days of gains, faces immediate resistance at around 24,400 levels, according to market analysts.

On the downside, immediate and crucial support is seen at 24,200, followed by a stronger support zone near the 24,000 levels, said Hardik Matalia, derivative analyst at Choice Broking.

"On the upside, 24,400 remains the first key resistance, with a more significant hurdle at 24,500," he said, adding that a decisive breakout above this level could open the gates for a potential rally towards the 24,700–24,900 range.

The Nifty 50 may face weak sentiment if it continues to trade below 24,450, according to Shrikant Chouhan, head of equity research at Kotak Securities. On the downside, the market may retest 24,000 and could dip further to 23,900, he said.

On the other hand, breaking above 24,450 may shift sentiment, pushing the market to 24,600-24,700, the analyst added.

The frontline index has formed a doji candle on the daily chart, indicating uncertainty at higher levels, said Hrishikesh Yedve, assistant vice president technical and derivatives research at Asit C. Mehta Investment Interrmediates. The key resistance stands at 24,460, while support lies at around 24,050, followed by 23,850, he added.

If Nifty 50 sustains above 24,460, then the rally could extend towards the 24,800–24,850 levels, Yedve further noted.

For Bank Nifty, the 56,000 level will act as stiff hurdle, while on downside 54,450 will be the major support, he said. “A decisive break below 54,450 may lead to selling pressure in Bank Nifty.”

Market Recap

India's benchmark equity indices snapped two days of advances to end in red on Wednesday, ahead of market holiday.

The NSE Nifty 50 ended 1.75 points or 0.01% lower at 24,334.20, while the BSE Sensex closed 46.14 points, or 0.06% down at 80,242.24.

FII/DII Activity

Foreign portfolio investors stayed net buyers of Indian equities for the 11th straight session on Wednesday, as they mopped up stocks worth Rs 50.57 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors stayed net buyers for the fourth session in a row, mopping up equities worth Rs 1,792.15 crore.

F&O Cues

• Nifty May futures down by 0.18% to 24,380 at a premium of 46 points.

• Nifty May futures open interest up by 2.2%.

• Nifty Options May 8 expiry: Maximum Call open interest at 26,100 and Maximum Put open interest at 22,000.

• Put-Call ratio at 1.12, with highest change in Put open interest at 24,350.

• Securities in ban period: RBL Bank.

Major Stocks In News

• G R Infraprojects: The company's arm has received construction order of Rs 4,263 crore from NHAI.

• Aster DM Healthcare: The company has acquired 1.9 crore shares of Quality Care India worth Rs 849 crore. It completed the acquisition of the 5% stake through share swap.

• Bank of India: The board of the bank approved fund raise of up to Rs 5,000 crore.

Currency Market

The Indian rupee closed 74 paise stronger against the US dollar on Wednesday at 84.49, the highest close since November 2024, in contrast to a weaker close at 85.26 on Tuesday, according to Bloomberg.