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Nifty 50 October futures (26,394)
Nifty is retaining its momentum. The index risen well above the key level of 26,200. It is currently trading at 26.274, up 0.22 per cent. The advances/declines ratio is at 33:17. This can keep the bias positive and take the index further higher during the day.
Nifty 50 outlook
The break and a strong follow-through rise above 26,200 is a positive. The outlook is bullish. The level of 26,200 will now act as a good support. Nifty can rise to 26,350 in the coming sessions.
The bullish outlook will get negated only if the Nifty declines below 26,200. If that happens, then a fall to 26,100-26,000 can be seen. However, such a fall looks less likely at the moment.
Nifty 50 futures
The Nifty 50 October futures (26,394) is up 0.32 per cent. Strong support will be in the 26,350-26,300 region. The contract can rise to 26,550-26,600 sometime next week.
The contract will come under pressure for a fall to 26,200 only if it declines below 26,300.
Trading strategy
A positional trade can be taken at the moment. So, traders who do not wish to carry the trade over the weekend can avoid this trade.
Go long now at 26,394. Accumulate on dips at 26,360. Keep the stop-loss at 26,270. Trail the stop-loss up to 26,420 as soon as the contract moves up to 26,470. Move the stop-loss further up to 26,490 when the contract reaches 26,540. Exit the long positions at 26,570.
Supports: 26,350, 26,300
Resistances: 26,550, 26,600
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