Nifty 50 August Futures (25,032)
Nifty 50 is broadly staying flat. It fell to a low of 24,973, but then managed to bounce back from there recovering all the loss. It is currently trading at 25,026, up marginally by 0.05 per cent.
The advance/declines ratio is currently at 28:22. Need to see if this sustains and increases in favour of the advances. If it does, then Nifty can rise more from here.
Nifty 50 outlook
Although the Nifty is managing sustain above 25,000, it seems to lack strong follow-through buying. However, the sharp bounce from the low of 24,973 indicates the presence of strong buyers below 25,000. That leaves the outlook bullish.
Support is in the 24,970-24,950 region. Nifty can rise to 25,250 and 25,500 in the coming days.
Nifty has to fall below 24,950 to become bearish. In that case, a fall 24,900 and lower levels is possible. But such a fall looks less likely.
Nifty 50 futures
Nifty 50 August Futures (25,032) is down marginally by 0.05 per cent. The support in the 25,000-24,980 is holding well. The contract has risen back well from the low of 24,980.
Intraday resistance is around 25,080. A strong break above it can take the Nifty 50 August Futures contract up to 25,150 initially and then further higher eventually in the coming days.
A sustained break below 24,980 is needed to turn the intraday outlook negative. Such a break can take the contract down to 24,920-24,900.
Trading strategy
Traders can go long on a break above 25,080. Keep the stop-loss at 25,055. Trail the stop-loss up to 25,100 as soon as the contract moves up to 25,110. Move the stop-loss further up to 24,120 when the price touches 25,135. Exit the longs at 25,150.
Supports: 24,980, 24,900
Resistances: 25,080, 25,150.