Nifty 50 June futures (23,453)
Nifty 50 is managing to hold higher. The index is currently trading at 23,434, up 0.15 per cent. The advances/declines ratio is at 32:18. This is positive, and it indicates that more rise could be on the cards for the day.
Nifty 50 outlook
Nifty is getting support in the 23,350-23,300 region since yesterday. The index has risen back very well from the low of 23,334 today.
Broadly, there is a range of 23,300-23,500 (narrow) / 23,200-23,500 (broad) within which the Nifty has been oscillating for some time. It is now poised around the midpoint of this range. As such there is equal chance for the Nifty to go either way from here.
We will have to wait for a breakout on either side of 23,200 or 23,500 to get clarity on the next move.
Nifty 50 futures
The Nifty 50 June futures (23,453) is up 0.24 per cent. The contract has resistance at 23,520 which can be tested during the day. But whether the contract breaks above 23,520 or not will determine the next move.
A decisive break above 23,520 will be bullish to see 23,600 and higher levels. On the other hand, a downward reversal from around 23,520 can drag the contract down to 23,350.
Trading strategy
Traders can wait for a rise and watch the price action around 23,500. If the Nifty 50 June futures contract fails to break 23,520 and falls back below 23,500 after that, then go short. Keep the stop-loss at 23,540. Trail the stop-loss down to 23,480 as soon as the contract falls to 23,455. Move the stop-loss further down to 23,445 when the contract touches 23,420. Exit the shorts at 23,380.
Supports: 23,300, 23,200
Resistances: 23,520, 23,600