Nifty 50 August Futures (24,315)
Nifty 50 has begun the week on a weak note. The index is trading at 24,222, down 0.6 per cent. All through last week, the Nifty had struggled and failed to get a sustained break above 24,400. This indicates lack of strong buyers above 24,400. It also keeps the bias negative for a further fall in the coming days. The advances/declines ratio is at 9:41. This is negative and could trigger a further fall during the day.
Nifty 50 outlook
Intraday resistance can be at 24,320. Above that 24,400 will continue to act as a strong resistance. The price action today indicates that the contract can trade well below 24,300. Nifty 50 can fall to 24,180 and 24,100 during the day. A break below 24,100 can drag it further lower to 24,000.
Nifty has to breach 24,300 to move up towards 24,400. Also, a sustained rise above 24,400 is needed to turn the sentiment positive.
Nifty 50 Futures
The Nifty 50 August futures (24,315) is down 0.37 per cent. The contract has strong resistances at 24,400 and 24,450. Any intraday bounce from here is likely to be capped at 24,400 for today.
The Nifty 50 August futures contract can fall to 24,200-24,170 during the day. A break below 24,170 can take it further down to 24,000 in the coming sessions.
Trade Strategy
Traders can go short now at 24,315. Add more shorts on a rise at 24,375. Keep the stop-loss at 24,480. Trail the stop-loss down to 24,280 as soon as the contract falls to 24,240. Move the stop-loss further down to 24,180 when the contract touches 24,140. Exit the shorts at 24,080.
Supports: 24,170, 24,000
Resistances: 24,400, 24,450