Nifty 50 August Futures (25,018)
Nifty 50 has begun the week on a positive note. The index opened the day with a gap-up at 24,906 and has risen well from there. It is now currently trading at 24,982, up 0.64 per cent.
The advances/declines ratio is at 37:13. This is positive. If this this trend continues, then Nifty can rise more during the day.
Nifty 50 outlook
The outlook is bullish. Supports for the Nifty are at 24,920 and then at 24,860. Nifty can rise to 25,100 in the coming sessions. A strong break above 25,100 will have the potential to take the index up to 25,350 and 25,500 this week.
The near-term picture will turn negative only if the Nifty declines below 24,860. In that case, a fall to 24,750 and lower is possible. But such a fall is unlikely as the fresh buyers are likely to come into the market and limit the downside.
Nifty 50 futures
The Nifty 50 August Futures (25,018) has surged breaking above the key resistance level of 24,900. It is up 0.65 per cent now. If the momentum sustains, the contract can rise to 25,130-25,150 is possible during the day.
The intraday outlook will turn negative only if contract declines below 24,900. If that happens, the Nifty 50 August Futures can fall ton 24,800. But such a fall is unlikely,
Trade strategy
Although the view is bullish, considering the risk/reward ratio, we suggest traders to wait for dips to take a trade. Go long on dips at 24,970 and 24,920.
Keep the stop-loss at 24,870. Trail the stop-loss up to 24,990 when the contract moves up to 25,020. Move the stop-loss further up to 25,090 when the contract touches 25,110. Exit the long positions at 25,150.
Please note that if the above-mentioned trade gets executed and remains open, then it can be carried forward for the new few days until the target or stop-loss is hit.
Supports: 24,900, 24,800
Resistances: 25,150, 25,300.