Nifty 50 August Futures (25,123)
Nifty 50 is trading higher. Although it has not seen a strong follow-through rise above 25,000 over the last couple of days, it is getting strong support around 24,900. That keeps the broader bias positive. The index is currently trading at 25,100, up 0.19 per cent. The advances/declines ratio is at 31:19. This is positive and indicates that more rise could be on the cards.
Nifty 50 outlook
As mentioned above, Nifty is getting strong support around 24,900. The price action over the last couple of days indicate that the index is getting bought every time it dips below 25,000. That leaves the outlook bullish.
Intermediate resistance is at 25,130. A break above it can take the index upto 25,250-25,300 in the coming sessions.
Nifty will have to fall below 24,900 to become negative. Only in that case, it will come under pressure for a fall to 24,700 and lower. But that looks less probable at the moment.
Nifty 50 Futures
The Nifty 50 August Futures (25,123) are up 0.3 per cent. Immediate resistance is around 25,150. A break above it and a subsequent rise past 25,185 will take the Nifty 50 August Futures contract up to 25,350 in the coming days.
Support is in the 25,000-24,980 region. The near-term outlook will turn negative only if the contract declines below 24,980. If that happens, it can fall to 24,900.
Trade Strategy
Traders can go long on a break above 25,150. Keep the stop-loss at 25,120. Trail the stop-loss up to 25,160 as soon as the contract moves up to 25,180. Move the stop-loss further up to 25,190 when the contract touches 25,210. Exit the long positions at 25,230.
Supports: 24,980, 24900
Resistances: 25,150, 25,350
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