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Trade Setup For May 4: Nifty Faces Resistance At 24,350 Amid Positive Global Cues; Check Key Levels

On the downside, 23,900 remains a crucial support level for the Nifty 50, analysts said.

Trade Setup For May 4: Nifty Faces Resistance At 24,350 Amid Positive Global Cues; Check Key Levels
Indian equity benchmarks registered their best monthly rally in nearly two years.
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  • NSE Nifty 50 faces resistance at 24,350 amid positive global cues
  • GIFT Nifty futures rose 0.34% to 24,229.5, indicating a positive Dalal Street opening
  • Support levels for Nifty are at 23,900 and 23,550; breakdown below 23,500 may increase selling
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The NSE Nifty 50 finds immediate resistance at 24,350-24,600 levels on Monday, amid positive global cues, such as S&P 500 and Nasdaq indices hitting their record highs along with positive investor sentiment stemming from US President Donald Trump stating that he was reviewing Iran's proposal to end the war.

The GIFT Nifty futures also climbed on Sunday, trading 0.34% higher at 24,229.5 at 9:35 pm. This indicated a likely positive start for the Dalal Street on Monday.

"On the upside, resistance levels are placed at 24,350 and 24,600," Aakash Shah, technical research analyst at Choice Broking said.

He stated that the price action suggested consolidation with a "mildly bullish bias."  The analyst had added that the index settled above the 100-week EMA at 23,997.55, gaining nearly 99.60 points (0.42%), which reflects underlying strength and hints at a potential shift toward a positive trend. 

Shah identified support on the downside in the 23,900 and 23,550 zone. A breakdown below 23,500 could result in increased selling pressure, according to the analyst.

"Given the current market structure, traders are advised to remain disciplined and adhere to strict stop-loss strategies amid ongoing volatility," Shah said.

Traders would also keep an eye on the outcome of the five-state assembly elections, which could have an impact on the market.

ALSO READ: Dividend Stocks To Watch This Week: NALCO, UCO Bank, Central Bank, Others — Check Record Dates

Bank Nifty 

The Bank Nifty index finds a key support zone at 56,200 levels, according to Shah. 

"Price action indicates selling pressure at higher levels along with a lack of sustained buying interest," he said. The analyst identified 55,550 as an immediate resistance level for the index on the upside.

"Traders are advised to remain cautious and follow disciplined risk management while closely tracking key levels for the next directional move," the analyst stated.

Market Recap

Indian equity benchmarks registered their best monthly rally in nearly two years as investors shrugged off concerns escalating from the US-Iran conflict. The NSE Nifty 50 and the BSE Sensex rose over 7.4% each in April, marking their biggest monthly gain since December 2023, when they had climbed 7.9%.

ALSO READ: Stock Market Highlights: Nifty, Sensex Clock Best Month In Nearly Two Years, Shrugging Off Iran War Concerns

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