Nifty 50 August Futures (24,802)
Nifty 50 is down sharply by over a per cent today. The strong sell-off in the global equity markets is weighing on the Nifty. The index is currently trading at 24,740, down 1.08 per cent. The advances/declines ratio is at 4:46. This is negative and indicates that more fall could be on the cards during the day.
Nifty 50 outlook
The index is now trading below the key support level of 24,750. The outlook is bearish. The index has room to fall further towards 24,670 during the day. If the index manages to bounce back from around 24,670, a corrective bounce to 24,750 can be seen.
If the Nifty declines below 24,670 then the downside can extend to 24,500 in the coming sessions.
A strong rise above 24,800 might be needed now to turn the sentiment positive again. That might need a strong positive trigger.
Nifty 50 futures
The Nifty 50 August Futures (24,802) is down about a per cent. The region around 24,850 will now be a good resistance now. As long as the contract trades below this resistance, the bias will remain negative. The Nifty 50 August Futures can fall to 24,700 and 24,600 in the coming sessions.
As mentioned above, 24,850 is an important resistance. The contract has to rise above 24,850 to get some breather. Only then a rise to 24,900 and higher will come into the picture.
Trade Strategy
Go short now at 24,802 and on a rise at 24,830. Keep the stop-loss at 24,870. Trail the stop-loss down to 24,780 as soon as the contract falls to 24,755. Move the stop-loss further down to 24,745 when the contract touches 24,730 on the downside. Exit the short positions at 24,700.
Supports: 24,700, 24,600
Resistances: 24,850, 24,920