Nifty 50 October Futures (24,990)
Nifty 50 is witnessing some recovery after having beaten down badly over the last few days. The index is currently trading at 24,852, up 0.2 per cent. It is important to see if this bounce is sustaining all through the day or not. The advances/declines ratio is at 29:21. This trend has to sustain for the Nifty to stay afloat.
Nifty 50 outlook
The outlook is slightly mixed for the day. If the Nifty manages to sustain above 24,800, a rise to 24,900-25,000 is a possibility in the coming sessions.
The overall trend is still down. Strong resistance is in the 25,100-25,200 region. Nifty has to surpass 25,200 in order to bring back the earlier bullishness.
Support is in the 24,800-24,750 region. A fall below 24,750 can keep the index under pressure. If that happens, Nifty can fall to 24,500 and lower in the coming days.
Nifty 50 Futures
The Nifty 50 October Futures contract is trading flat at 24,990. The contract has come down from its intraday high of 25,071.
The bounce back move seen in the early trades today seems to lack a strong follow-through buying. That can keep the contract under pressure.
Support is at 24,860 which can be tested if the contract fails to get a strong follow-through rise from here. A break below 24,860 can drag the contract down to 24,700 and even lower in the coming days.
Strong resistance is around 25,200 which can be tested if the Nifty 50 October Futures contract manages to breach 25,100. But a further rise above 25,200 is less likely.
Trade Strategy
The broader picture is still bearish. But traders have to wait either for a rise to 25,200 or a break below 24,860 to take fresh short positions. As such we suggest traders to stay out of the market.
Supports: 24,860, 24,700
Resistances: 25,100, 25,200