Trade Setup For May 5: Nifty 50 Faces Immediate Resistance At 24,590

Markets in Australia were trading in losses. Prime Minister Anthony Albanese was reelected for a second term. Financial markets in Japan, South Korea, and China are closed for public holidays.

The S&P ASX 200 was trading 0.21% down at 8,220.30 as of 6:43 a.m.

On Friday, the Dow Jones Industrial Average and S&P 500 ended 1.39% and 1.47% higher, respectively. The Nasdaq Composite ended 1.51% higher.

The brent crude was trading 3.52% down at $59.13 a barrel. The Bloomberg dollar index was trading 0.20% down at 99.83. The Bloomberg spot gold was trading 0.55% higher at $3,258.39 an ounce.

The GIFT Nifty was 0.07% or 17.50 points down at 24,522.00 as of 6:47 a.m.

The immediate resistance for NSE Nifty 50 is placed at 24,590, and support remains near the 200-day simple moving average around 24,050, according to Hrishikesh Yedve, assistant vice president, technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.

Yedve highlighted that a sustained move above 24,590 could push the Nifty 50 towards 24,800–24,850 levels.

For Bank Nifty, the resistance is seen at 56,000, while the key support lies at 54,450, he said.

“A decisive break below 54,450 could lead to fresh selling pressure; otherwise, range-bound consolidation between 54,450 and 56,000 might persist,” he added.

The support for NSE Nifty 50 is placed at 24,250. A fall below this level might trigger a correction towards 24,000, according to Rupak De, senior technical analyst at LKP Securities.

"The index may remain range-bound within the 24,000–24,550 band. Only a decisive breakout above 24,550 may lead to a decent rally in the index," De said.

Market Recap

India's benchmark equity indices ended holiday-shortened week higher on Friday, with the benchmark indices swinging to green after a day of decline. The NSE Nifty 50 closed 0.05% higher at 24,346.70, while the BSE Sensex ended 0.32% up at 80,501.99.

The indices have also logged a weekly gain, as the Nifty 50 had closed at 24,039.35 and Sensex settled at 79,212.53 in the week ended on April 25.

FII/DII Activity

Foreign portfolio investors stayed net buyers of Indian equities for the 12th straight session on Friday, as they bought stocks worth Rs 2,769.8 crore.

Domestic institutional investors remained buyers for the fifth session in a row, mopping up equities worth Rs 3,290.5 crore, according to provisional data from the National Stock Exchange.

F&O Cues

• Nifty May Futures down by 0.1% to 24,395, at a premium of 49 points.

• Nifty May futures open interest down by 3%.

• Nifty Options May 8 Expiry: Maximum Call open interest at 26,000 and Maximum Put open interest at 24,000.

• Put-Call ratio at 1.12, with highest change in Call open interest at 24,500.

• Securities in ban period: RBL Bank.

Major Stocks In News

• Tata Motors: The company had approved raising up to Rs 500 crore via issuance of non-convertible debentures.

• Eicher Motors: The company has appointed Siddhartha Lal as the executive chairman for five years with effect from Feb. 13, 2025, and appointed Govindarajan Balakrishnan as the managing director for five years effective from Feb. 13, 2025.

• RR Kabel: The company approved 36,000 MT capacity expansion of wires and cables at Waghodia plant with an investment of Rs 1,050 crore and approved 6,000 MT capacity expansion at Silvassa plant with an investment of Rs 400 crore.

Currency Market

The Indian rupee fell seven paise to 84.30 against the US dollar on Friday. It strengthened 74 paise to reach a seven-month intraday high of 83.75 and crossed the 84 mark.

The local currency had closed 74 paise stronger against the dollar on Wednesday at 84.49, the highest close since November 2024, according to Bloomberg.