Nifty 50 August Futures (24,245)
Nifty 50 is trading higher. It touched a high of 24,306 and has come down well from there. The index is currently trading at 24,201, up 0.9 per cent. The advances/declines ratio is at 47:3. This is positive. If this trend sustains, then Nifty can rise further during the day.
Nifty 50 outlook
The price action in the Nifty over the last couple of days indicates the presence of strong sellers above 24,300. The fall from the intraday high of 24,306 today also signals the same. So, that leaves the danger of the Nifty falling back to 24,000-23,900 during day. This fall is possible if the index fails to bounce back from here.
Also, the bullish case will strengthen only if the Nifty makes a decisive break above 24,400. Only then, the chances of a rise to 24,500-24,700 will come back into the picture.
Nifty 50 Futures
Nifty 50 August Futures (24,245) are up 0.8 per cent. The contract has resistances at 24,400 and 24,500. Immediate support is at 24,180. A break below it can take the Nifty 50 August Futures contract down to 24,000 during the day.
For now, it looks like the contract can be in a range of 24,000-24,400. Within this, the bias is bearish to break 24,000 and fall to 23,800-23,750 in the coming sessions.
A strong break above 24,500 is needed to become bullish again. Only then will the doors open for a rise to 24,800 and higher levels.
Trade Strategy
Go short on a break below 24,180. Keep the stop-loss at 24,220. Trail the stop-loss down to 24,140 as soon as the contract falls to 24,110. Move the stop-loss down to 24,090 when the contract falls to 24,065. Exit the shorts at 24,040.
Supports: 24,180, 24,000
Resistances: 24,400, 24,500