Trade Setup For May 6: Nifty Bulls Eye 24,500 Breakout Amid Positive Global Cues — Check Key Levels

The NSE Nifty 50 finds resistance at 24,450-24,500 levels, according to Sudeep Shah, head of technical and derivatives research at SBI Securities. The index is expected to continue its bullish momentum due to strong global cues.

The Indian markets witnessed a sharp surge in the final hour of trade on Wednesday, after Axios reported that the US and Iran have "closed in" on ending the war. Subsequently, crude oil prices eased, and equity markets globally reacted positively.

After the Wall Street opened, the S&P 500 hit a fresh record high, whereas Dow Jones Industrial Average rose 500 points and Nasdaq Composite surged 1%.

"Going ahead, the immediate resistance for Nifty is placed in the 24,450-24,500 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 24,650," Sudeep Shah said.

On the other hand, the index sees immediate support at 24,220-24,200 levels, as per the analyst.

ALSO READ: US Stock Market Today: S&P 500 Hits Record, Dow Zooms 500 Points As Wall Street Bulls Charge On Iran Peace Hopes

The Nifty 50 has been consolidating around its 50-day exponential moving average at 24,180 over the past six trading sessions, according to Nandish Shah, deputy vice president, of HDFC Securities.

"The immediate support remains at 23,800, while 24,334 and 24,600 are likely to act as short-term resistance levels," he added.

Bank Nifty

The Bank Nifty finds immediate resistance in the 56,300-56,400 zone, according to Sudeep Shah. "Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 56,700, followed by 57,000 in the short term," he said.

On the downside, the immediate support for Nifty is placed in the 55,600-55,500 zone, according to the analyst.

As long as Nifty Bank sustains above 55,500–55,400, buy-on-dips strategy would be favorable, while a decisive move above 56,100 could trigger further upside momentum in the coming sessions, according to Dhupesh Dhameja, derivatives research analyst at SAMCO Securities.

Dhameja identified the key support level for the index at 56,100 levels.

Market Recap

IIndain equity benchmarks rallied during the last-hour trade on reports of US nearing to end war with Iran. The NSE Nifty 50 closed up 1.24% at 24,330.95, gaining 298.15 points, while the BSE Sensex ended 1.22% higher at 77,958.52, up 940.73 points.

ALSO READ: Stock Market Highlights Today: Nifty Ends Above 24,300, Sensex Rallies Nearly 1,000 Points On Reports US-Iran Near Deal To End Conflict

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.