Nifty 50 July futures (24,559)
Nifty 50 has risen back very well after opening with a gap-down. The index made an intraday low of 24,362 and has recovered almost all the loss from there. It is currently trading at 24,524, down marginally by 0.03 per cent. The advances/declines ratio is at 27:23. This is broadly neutral.
As the market gets ready for the Union Budget tomorrow, volatility is likely to be high in the coming sessions. So, one has to be very cautious until the market settles down after the Budget.
Nifty 50 outlook
The Nifty 50 (24,524) has a crucial intraday resistance in the 24,580-24,600 region. So, a strong rise above 24,600 will be needed for the Nifty to gain momentum. Only then the doors will open for a further rise to 24,800 and higher levels this week.
Failure to breach 24,600 decisively can continue to keep the index under pressure. A turnaround from 24,600 can take the Nifty 50 index down to 24,400 again.
Nifty 50 futures
Nifty 50 July futures (24,559) is marginally up by 0.1 per cent. The contract has strong resistance in the 24,580-24,620 region. We expect this resistance to cap the upside. The contract can turn down again anywhere from the 24,580-24,620 region and fall back to 24,400 in the coming sessions.
To negate the above-mentioned fall, the Nifty 50 July futures contract has to breach 24,620. If that happens, the downside pressure will ease and a rise to 24,800 can be seen.
Trading strategy
Traders can go short on a rise at 24,570 and 24,610. Keep the stop-loss at 24,640. Trail the stop-loss down to 24,545 as soon as the contract falls to 24,510. Move the stop-loss further lower to 24,480 when the contract touches 24,455. Exit the shorts at 24,440.
Supports: 24,500, 24,400
Resistances: 24,580, 24,620