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Nifty 50 July Futures (24,300)
Nifty 50 is trading lower. The index witnessed a sharp fall on Wednesday, and it is continuing to remain under pressure. Nifty is currently trading at 24,264, down 0.25 per cent. The advances/declines ratio is at 32:18. This is negative. It indicates that more fall could be on the cards.
Nifty 50 outlook
Nifty (24,264) has an important intraday support at 24,200. A break below it can take it down to 24,100 and 24,000 during the day.
Resistance is at 24,350. Nifty has to surpass this hurdle to ease the downside pressure. Only it can rise to revisit 24,400-24,450 levels.
From a short-term perspective, the level of 24,000 is a strong support. A bounce from there can have the potential to take the index upto 24,200 and even higher again. If that happens, then the broad 24,000-24,450 range can continue to remain intact.
Nifty 50 Futures
The Nifty 50 July Futures (24,300) are down 0.23 per cent. Intraday support is at 24,230 which can be tested during the day. A break below it can increase the downside pressure. Such a break can drag it down to 24,100 during the day.
In case the Nifty bounces from around 24,230, it can rise back to 24,400-24,450.
Trade strategy
Traders can wait for a fall and go short on a break below 24,230. Keep the stop-loss at 24,270. Trail the stop-loss down to 24,205 when the contract falls to 24,190. Move the stop-loss further down to 24,160 when the contract touches 24,140. Exit the shorts at 24,110.
Supports: 24,230, 24,100
Resistances: 24,400, 24,450.
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