Nifty 50 October Futures (24,784)

Nifty 50 is looking mixed, and range bound over the last few days. The index has been struggling to rise within the range over the last few sessions. It has been struggling to get a strong rise past 24,900. Nifty touched high of 24,882 today and has come down from there. It is currently trading at 24,763, marginally down by 0.1 per cent. The advances/declines ratio is at 16:34. This keeps the bias negative and the chances high for the Nifty to fall within the range during the day.

Nifty 50 outlook

Nifty has been facing strong resistance around 24,900. That leaves the chances high for the index to see a fall to 24,650-24,600 during the day.

The price action thereafter will be very crucial. A bounce from the 24,650-24,600 region will give a breather. It will keep the sideways range intact and take the index up to 24,800-24,900 again.

But a break below 24,600 will be bearish. It will drag the index down to 24,500 and lower going forward.

Nifty 50 Futures

Nifty 50 October Futures (24,784) has come down sharply from its intraday high of 24,939. It can test the support at 24,730 during the day. A break below 24,730 will be bearish to see 24,650 initially. A further break below 24,650 will then drag the contract down to 24,500 and even lower.

On the other hand, if the contract manages to bounce from around 24,730, a bounce back move to 24,850-24,900 can be seen.

Trade strategy

Traders can go short on a break below 24,730. Keep the stop-loss at 24,760.  Trail the stop-loss down to 24,730 as soon as the contract falls to 24,710. Move the stop-loss down to 24,700 when the contract touches 24,90. Exit the shorts at 24,660.

Supports: 24,730, 24,650

Resistances: 24,850, 24,950

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