Trade Setup For May 6: Nifty's Key Hurdle Stays At 24,200; GIFT Nifty Signals Positive Start

The NSE Nifty 50 index finds resistance at 24,180–24,200 levels, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.

The Indian markets, despite ending lower on Monday, showed signs of revival in the last hour of trade as the benchmark indices bounced back from the day's lows.

The index is anticipated to open in the green amid shift in global cues, as crude oil prices relatively eased from the highs seen on Monday, and the US stock market continued its bullish momentum, with Nasdaq Composite scaling a new record high.

Brent crude futures were trading at $110.75 per barrel, down 3.22% as of 8:50 p.m. IST.

GIFT Nifty futures were trading 0.28% higher at 24,176, signalling a likely positive start for the Dalal Street on Wednesday.

"On the upside, the 24,180–24,200 zone remains a key hurdle. A sustained move above 24,200 may pave the way for a sharp upside rally towards 24,350, followed by 24,500 in the short term," Shah said.

Going forward, the 23,900–23,880 zone is likely to act as immediate support for the index, as per the analyst.

"A decisive break below 23,880 could trigger further weakness, dragging the index towards the next crucial support at 23,750," he stated.

The index formed a Doji candlestick pattern with a long lower shadow highlighting buying demand at lower levels around the last two weeks lows around 23,800-23,900 as it continues to consolidate around the 20 days extend-moving average, according to Bajaj Broking Research.

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Bank Nifty

The Bank Nifty is expected to face crucial support in the 54,100- 54,000 zone, according to Shah.

"A sustained break below 54,000 may trigger further downside, potentially leading to a correction towards the 53400 level in the short term," he said.

On the upside, the 55,000–55,100 zone will serve as an immediate resistance, Shah said. "A decisive move above 55,100 could result in a pullback rally towards the 55,600 mark."

Bajaj Broking expects Bank Nifty to extend consolidation in the broad range of 54,000-56,500 amid stock specific action. The index has immediate support around 54,000 levels, which is the confluence of the recent low and 38.2% retracement of the last three weeks pullback (49,955-57,456), it added.

Market Recap 

Indian equity benchmarks recovered from deeper intraday losses but ended lower amid expiry-led volatility. The Nifty 50 closed 0.36% lower at 24,032.80, while the Sensex fell 0.33% to 77,017.79. Intraday, the Nifty was down as much as 0.95%, while the Sensex declined up to 0.94%. Positive global cues and a decline in Brent crude prices helped indices pare losses toward the close.

ALSO READ: Stock Market News Today Highlights: Nifty, Sensex Rebound Late But End Lower On Weekly F&O Expiry Drag

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