Nifty seems to be struggling to get a strong follow-through rise above 24,200. The index touched a high of 24,236 and has since declined. It is currently trading flat at 24,138. The advance-decline ratio is at 20:30. This indicates that the bias is negative.
Nifty 50 Outlook
Immediate support is in the 24,100-24,080 region. Below that, 24,000 is the next important support. Resistance is around 24,250.
As long as the Nifty stays above 24,000 the broader outlook will remain bullish. That will keep alive the chances of a decisive break above 24,250 to reach 24,400-24,450.
The bias will turn negative only if the Nifty declines below 24,000. Then it can fall to 23,900-23,800.
Nifty 50 Futures
The Nifty 50 July Futures (24,200) is also trading flat. The contract has support in the 24,100-24,050 region. A fall below 24,150 during the day can drag the contract down to 23,100-24,050.
Resistance is around 24,250. The contract will gain momentum only on a break above 24,250, which can take it up to 24,450-24,500 in the coming sessions.
For now, the immediate picture is unclear. The contract can go either way from here.
Trade strategy
Traders can go long only on a break above 24,250. Keep the stop-loss at 23,210. Trail the stop-loss up to 24,275 as soon as the contract moves to 24,290. Move the stop-loss further up to 24,310 when the contract touches 24,340 on the upside. Exit the long positions at 24,380.
Supports: 24,150, 24,100
Resistances: 24,250, 24,450