Nifty 50 August Futures (24,213)
Nifty 50 is continuing to struggle to attract strong buyers to breach 24,400. The index opened higher on Wednesday but failed to generate a strong follow-through rise during the day. Today, it opened with a gap-down and is trading lower. Nifty is currently at 24,158, down 0.55 per cent. The advances/declines ratio is at 11:39. This is negative, indicating that more falls could be on the cards during the day.
Nifty 50 outlook
Since the beginning of this week, the Nifty has been broadly range bound between 23,900 and 24,400. Within this range, the index has started to come down now, so the chances are high for it to come down towards 24,000 and 23,900 in the coming sessions.
A decisive break below 23,900 will be very bearish. Such a break will drag the Nifty to 23,700 and even lower in the coming days.
A strong break above 24,400 and a subsequent rise above 24,500 is needed now to bring back the positive sentiment.
Nifty 50 Futures
Nifty 50 August Futures (24,213) is down 0.64 per cent. The outlook is bearish. The contract can fall to 24,000 and even 23,900 during the day. A break below 23,900 will see the fall extending to 23,750.
The region between 24,450 and 24,500 is a strong resistance zone. The Nifty 50 August Futures contract must rise above 24,500 to become bullish again.
Trade Strategy
Traders can go short now at 24,213. Accumulate shorts on a rise at 24,320. Keep the stop-loss at 24,420. Trail the stop-loss down to 24,180 as soon as the contract falls to 24,140. Move the stop-loss down to 24,080 when the contract touches 24,020. Exit the shorts at 23,950.
Supports: 24.000, 23,900
Resistances: 24,350, 24,450
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.