Nifty 50 started today’s session higher at 24,845 versus yesterday’s close of 24,812. However, soon after opening, the index started to fall and is now trading at 24,800, down by a marginal 0.1 per cent.
The advance/decline ratio stands at 22/28, showing a slight bearish bias. Bajaj-Auto has advanced 2.9 per cent and is the top performer whereas Titan Company, down 1.4 per cent, is the top loser.
The mid- and small-cap indices too are facing downward pressure. The sectoral indices too, which mostly are flat or marginally down, corroborate the bearish bias.
Nifty Auto, up about 0.9 per cent, is the best among the few gainers so far today. Nifty IT is the top loser by depreciating 0.9 per cent.
The Asian equity market sends out mixed signals. While Nikkei 225 (38,410) is up 0.5 per cent, Hang Seng (17,590) is down 0.3 per cent. ASX 200 (8,020) and KOSPI (2,700) are trading flat.
Nifty 50 futures
The August futures of Nifty 50 opened today’s session flat at 24,840. After marking an intraday low of 24,791, the contract has now recovered to 24,840.
From the current level, the contract faces a resistance at 24,860. If this is breached, Nifty futures can rally to 25,000 quickly.
On the other hand, if the contract falls, it can find support at 24,750 and 24,700. A break below the latter will turn the outlook bearish. Nearest support below 24,700 is at 24,620.
Trading strategy
For intraday, buy Nifty futures only if it breaks out of 24,860. Target and stop-loss can be 25,000 and 24,790 respectively.
Traders who are holding the longs we recommended at 24,740 earlier this week can retain them. But revise the stop-loss up from 24,680 to 24,740. When the contract surpasses 24,860, trail the stop-loss to 24,790. Exit at 25,000.
If neither target nor stop-loss is hit in the above suggested trades, exit this trade towards the end of the session.
Supports: 24,750 and 24,700
Resistance: 24,860 and 25,000