Nifty 50 July Futures (24,707)
Nifty has come down sharply after opening the day with a gap-up. The index touched a high of 24,854.80 at the opening trades and has come-off sharply from there giving back all the gains. It is currently trading at 24,717, down 0.34 per cent. The strong sell-off in the global equities is weighing on the Indian markets. The advances/declines ratio is at 14:36. This is negative.
Nifty 50 outlook
Nifty (24,717) has an immediate support at 24,700. Below that 24,680-24,650 is the next good support. We will have to wait and watch whether the Nifty is managing to sustain above 24,700 and bounce back or not. A break below 24,700 can take the index down to 24,680-24,650. In case the sell-off intensifies, then a fall below 24,650 can drag the index down to 24,570-24,550.
Nifty 50 Futures
Nifty 50 July Futures (24,707) is down 0.41 per cent. The contract has come down sharply from the intraday high of 24,837. Intraday resistance will now be at 24,770. As long as the contract trades below this resistance, the chances are high for the Nifty 50 July Futures to see 24,640 and 24,600 in the coming sessions.
The region between 24,600 and 24,550 is a strong support which can limit the downside in the near-term. A strong bounce from there can take the contract up to 24,750-24,800 again.
Key resistance is around 24,850. A strong break above this resistance is needed for the Nifty 50 July Futures contract to gain momentum for a rise to 25,000.
Trade Strategy
The broader picture is bullish. So, we prefer going long on dips rather than taking short positions at current levels. Wait for a fall and go long at 24,640 and 24,610. Keep the stop-loss at 24,570. Trail the stop-loss up to 24,670 as soon as the contract goes up to 24,695. Move the stop-loss further up to 24,705 when the contract touches 24,730. Exit the long positions at 24,750. This trade, if triggered today, can be held till Monday.
Supports: 24,600, 24,550
Resistances: 24,770, 24,850