Nifty 50 August Futures (24,298)
The sell-off in the global equity markets is weighing on the Indian markets. Nifty 50 opened with a wide 400-points gap down and is continuing to trade lower.
The index is currently trading at 24,286 down 1.75 per cent. The advances/declines ratio is at 7:43. This is negative. If this trend continues, then Nifty can fall more during the day.
Nifty 50 outlook
The outlook is bearish for Nifty (24,286). Resistance will now be in the 24,400-24,450 region. The index can fall to 24,100 and 24,000 in the coming days.
A strong rise above 24,450 is now needed to get some breather. Only then the chances of a rise to 24,600 and higher levels will come back into the picture.
Nifty 50 futures
The Nifty 50 August Futures (24,298) is down about 1.7 per cent. Resistance is in the broad 24,400-24,500 region. The contract can fall ton 24,200-24,180 during the day. A break below 24,180 can drag it further down to 24,050-24,000 in the coming sessions.
Trade strategy
Considering the risk/reward ratio, traders may have to wait for a rise to go short. Wait for a bounce and go short at 24,340 and 24,380. Keep the stop-loss at 24,420.
Trail the stop-loss down to 24,290 when the contract moves down to 23,260. Move the stop-loss further down to 24,250 when the contract touches 24,230 on the downside. Exit the short positions at 24,220.
Please note that the bounce to 24,340 and 23,380 may not happen as well and the contract can fall from here itself. In that case, traders may have to stay out of the markets without taking any trades today.
Supports: 23,180, 24,050
Resistances: 24,400, 24,500
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.