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Nifty 50 October Futures (24,770)
Nifty 50 opened with a gap-down and is trading lower. The index is currently trading at 24,670, down 0.32 per cent.
The broader sentiment is weak. The advance/decline ratio is at 18:32. This is negative. If this trend sustains, there can be more fall during the day.
Nifty 50 outlook
The level of 24,650 is a very crucial support for the Nifty. The index made a low of 24,567 and has risen back above 24,650. Need to see if this bounce is sustaining or not.
The region between 24,800-24,850 will now be a very strong resistance. Nifty has to rise past 24,850 decisively in order to turn the sentiment positive. Else it will remain vulnerable for a fall to 24,500-24,450 and lower in the coming sessions.
Nifty 50 Futures
The Nifty 50 October Futures (24,770) are down 0.3 per cent. Though the contract has risen back well from the low of, strong resistance is in the 24,800-24,860 region which can cap the upside.
We expect the contract to turn down again from around 24,800 and fall to 24,650-24,600 again.
Only a strong rise above 24,860 will ease the downside pressure. Such a rise looks less probable at the moment.
Trade Strategy
Traders can go short now at 24,770. Add more shorts on a rise at 24,790. Keep the stop-loss at 24,840. Trail the stop-loss down to 24,750 as soon as the contract falls to 24,720. Move the stop-loss down to 24,690 when the contract touches 24,660 on the downside. Exit the short positions at 24,620.
Supports: 24,600, 24,500
Resistances: 24,800, 24,860
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