Nifty 50 August Futures (24,620)
Nifty 50 is getting a strong follow-through rise after the bounce from the low of 24,210.80 made on Thursday. The index is trading at 24,576, up 0.7 per cent. The advances/declines ratio is at 39:11. This is positive. If this trend continues, then the Nifty can move further up during the day.
Nifty 50 outlook
The strong rise above 24,500 is a positive for the Nifty (24,576). Immediate resistance is at 24,600. A break above this resistance can clear the way for the Nifty to target 24,800-24,850 and even higher.
Failure to breach 24,600 in the first attempt can trigger an intraday corrective dip to 24,550 or even 24,500.
As such the price action around 24,600 will need a close watch during the day.
Nifty 50 Futures
The Nifty 50 August Futures (24,620) are up about 0.7 per cent. Immediate support is at 24,600. The contract can rise to 24,680-24,700. The price action thereafter will need a close watch.
A break above 24,700 will be bullish to see 24,800 and higher next week. On the other hand, a reversal from around 24,700 can drag the contract down to 24,600 again.
Trade Strategy
Traders can go long now at 24,620. Keep a stop-loss at 24,585. Trail the stop-loss up to 24,640 as soon as the contract moves up to 24,660. Move the stop-loss further up to 24,665 when the contract touches 24,680. Exit the long positions at 24,695.
Supports: 24,600, 24,500
Resistances: 24,700, 24,800