Nifty 50 August Futures (24,375)
Nifty 50 is trading higher. The index touched a high of 24,419 at the opening trades and has come down slightly from there. It is currently trading at 24,370, up 1 per cent. The advances/declines ratio is at 47:3. This is positive. If this trend sustains, then it can aid Nifty to get a decisive rise and close above 24,400 today. We will have to wait and see.
Nifty 50 outlook
The pull back from the intraday high of 24,419 indicates lack of strong follow-through rise above 24,400. Intraday support is in the 24,320-24,300 region. A break below 24,300 can drag the Nifty down to 24,200-24,100 during the day.
A sustained rise above 24,400 is needed for the Nifty to strengthen the bullish case for a rise to 24,500 and higher.
Nifty 50 Futures
The Nifty 50 August Futures (24,375) are up about a per cent. The contract has come down from the intraday high of 24,444.
Immediate support is in the 24,350-24,320 region. The contract has to sustain above this support zone and get a sustained break above 24,400. Only then a rise to 24,500 is possible.
A break below 24,320 can drag the Nifty 50 August Futures contract down to 24,220 and 24,180 during the day.
Trade Strategy
Traders can wait for a fall. Go short on a break below 24,320. Keep the stop-loss at 24,360. Trail the stop-loss down to 24,300 as soon as the contract falls to 24,280. Move the stop-loss down to 24,270 when the contract moves down to 24,250. Exit the short positions at 24,220.
Supports: 24,320, 24,220
Resistances: 24,400, 24,500