Trade Setup for Dec. 4: Nifty 50 Faces Resistance at 24,700-24,800

The Nifty 50 index is currently under scrutiny as it shows immediate support at the 24,300 level, with important resistance appearing around 24,500. Analysts have indicated that significant resistance is found in the range of 24,700 to 24,800.

According to Hrishikesh Yedve, Assistant Vice President of Technical and Derivatives Research at Asit C Mehta Investment Intermediates Ltd, the daily chart indicates that the Nifty has successfully broken out of an inverted head and shoulders pattern. The index has surpassed the 100-day exponential moving average situated at 24,310, as well as the 50-day double exponential moving average (DEMA) at 24,370, closing above both of these key levels.

Yedve further explains that 24,550 will serve as an immediate resistance point for the index. If it remains above this level, the index could potentially move towards the 24,700 to 24,800 levels. Traders are advised to adopt a "buy on dips" strategy as long as the Nifty stays above 24,300.

As the Nifty index steadily climbs, it approaches a critical hurdle at 24,500, which could act as a pivotal point for market sentiment, according to Osho Krishnan, an analyst in Technical and Derivatives at Angel One. A breakthrough at this juncture may suggest a trend reversal, enabling a continuation of the prevailing bullish trend towards 24,800. In contrast, the support zone has slightly risen to 24,350-24,300, followed by 24,200-24,150.

In related news, Bank Nifty closed positively at 52,696 levels. According to Yedve, the daily chart for Bank Nifty reveals a bullish candle formation. The index has also crossed the resistance levels of 52,500-52,600, closing above them, which indicates underlying strength. If Bank Nifty maintains its position above 52,500, it could reach levels between 53,000 and 53,500, supporting the recommendation of a buy-on-dips strategy.

Market Recap

Benchmark equity indices have risen for three consecutive sessions, reaching their highest values in about a month. This upswing can be attributed to positive global sentiment ahead of upcoming US employment data and gains in heavyweight stocks.

During the trading day, the Sensex reached a high of 80,949.10, marking its highest point since October 22, while Nifty touched a high of 24,481.35, its highest since November 7. At the end of the session, Nifty recorded a gain of 0.75%, or 181.10 points, closing at 24,457.15, which is its best close since November 6. Likewise, Sensex ended up by 0.74%, or 597.67 points, at 80,845.75, its strongest close since October 21.

Money Market

The Indian rupee experienced a record fall before finishing flat on Tuesday. Factors contributing to this downward trend include foreign outflows, domestic growth concerns, and a threat from Donald Trump regarding BRICS nations.

The rupee settled at 84.69 after hitting a record low of 84.75, according to Bloomberg data. It also closed at 84.7 against the US dollar the previous day.

Nifty, resistance, market