Nifty 50 December Futures (24,468)

Nifty 50 continues to move up. It is currently trading at 24,345, up 0.28 per cent. The advances/declines ratio is at 31:19. This is positive. Need to see if this trend sustains and take the index higher during the day.

Nifty 50 outlook

A crucial resistance is around 24,400 for the Nifty (23,345). The index has to breach this hurdle in order to go gain momentum. If that happens, then a rise to 24,600-24,700 is possible. Failure to breach 24,400 can drag the Nifty down to 24,200-24,100. So we will have to wait and watch what happens.

Nifty 50 Futures

The Nifty 50 December Futures (24,468) is up 0.15 per cent. The rise above 24,400 is a positive. However, a strong follow-through rise above 24,500 is needed to become convincingly bullish. Only then a rise to 24,600-24,700 will come into the picture.

On the other hand, if the contract falls below 24,400 again, then it can decline to 24,200-24,150 in the coming sessions.

Trade Strategy

Traders can go long only on a break above 24,500. Keep the stop-loss at 24,460. Trail the stop-loss up to 24,530 as soon as the contract moves up to 24,560. Move the stop-loss further up to 23,570 when the contract touches 24,595. Exit the long positions at 24,630.

Supports: 24,400, 24,200

Resistances: 24,500, 24,700

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