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Nifty 50 continues to struggle for a sustained break above 24,400. On Monday, the index rose to 24,472.80 and then descended below 24,400. The index is now trading at 24,320, down 0.11 per cent. The advance-decline ratio is 32:18. This is negative.
Nifty 50 outlook
The short-term outlook is mixed. The Nifty has been oscillating within the broad range of 23,900-24,500 for more than a week. Intraday support is at 24,300. A break below it can drag the Nifty down to 24,200 and 24,170 during the day.
If the index manages to sustain above 24,300, a bounce to 24,450 is possible during the day.
Nifty 50 futures
The Nifty 50 August futures (24,360) is trading flat. The immediate outlook is mixed. Support is around 24,250. Resistance is in the 24,500-24,550 region.
A dip to test 24,250 cannot be ruled out. Whether the contract bounces back or not will determine the next move.
A bounce from around 24,250 can take the Nifty 50 August futures contract up to 24,500. But a break below 24,250 can see a fall to 24,180 and even lower.
Trade strategy
Considering the risk-reward ratio and the mixed outlook, we suggest traders stay out of the market today.
Supports: 24,250, 24,180
Resistances: 24,500, 24,550
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