Trade Setup for May 5: Nifty bulls remain on the edge even as global cues stabilise despite tariff uncertainties – CNBC TV18

The cumulative gain that the Nifty 50 has seen in the last three sessions is all of 18 points. The bulls are unwilling to take it higher, but are ensuring that it does not fall lower either and every dip is getting swiftly bought into.

All of last week, the Nifty remained stuck in a 600 point range as tensions continue to persist on the India-Pakistan border and despite multiple tailwinds like falling crude oil prices and a stronger rupee, the benchmark index has failed to break beyond the range.

Last Friday was a similar story. Even after hitting a high of 24,589, the Nifty could not sustain at those levels, eventually ending where it closed on Wednesday.

Global cues, that were a major source of volatility, have started to stabilise, at least for now, despite no material headway on US President Donald Trump’s reciprocal tariff talks. Although India is a front-runner to strike a deal with the trump administration, the timeline still remains unclear.

Wall Street logged its biggest winning streak in 20 years after earnings from most big tech companies were done and non-farm payrolls were well above expectations, prompting further pressure on the US Federal Reserve to cut interest rates. All eyes will be on the FOMC and its policy outcome in the upcoming week.

What will keep the Nifty in focus on Monday will be the reaction in the Nifty Bank, as two important constituents, State Bank of India

, and Kotak Mahindra Bank, will be reacting to their quarterly results, which were reported on Saturday.

Aside of SBI and Kotak Bank, stocks like Netweb Technologies, CDSL, Utkarsh Small Finance Bank, Indian Bank, and Avenue Supermarts, will also be reacting to their results.

Reporting results on Monday include stocks like Mahindra & Mahindra, along with DCM Shriram, CAMS, CCL Products, Coforge, Prataap Snacks, OneSource Specialty Pharma among other names.

Also watch out for any follow-up moves in JSW Steel, which was the top Nifty loser on Friday, after the Supreme Court termed its six-year old Bhushan Power and Steel resolution plan as illegal, triggering a sharp fall in the stock.

Nagaraj Shetti of HDFC Securities recommends using any dip on the Nifty as a buying opportunity. He added that a decisive move above 24,500 – 24,600 levels can open further upside on the Nifty towards 24,800 – 25,000 levels and any downside, may find near-term support at 24,000 – 23,800 levels.

Kotak Securities’ Amol Athawale believes that 24,200 is a firm support for the Nifty and trading above this level can take the index towards 24,600 – 24,800 levels. Only a slip below 24,200 can drag the index lower to 24,050 or even 23,90- levels.

Dhupesh Dhameja of SAMCO Securities believes that the medium-term picture of the Nifty Bank remains positive till the time the index remains above the 54,000 – 54,300 mark. On the upside, crossing the 56,000 mark will be key for a move towards 56,500, while a break below 55,000 can take the index down to 54,300 levels.