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Nifty 50 July Futures (24,286)
Nifty 50 opened with a wide gap-down following the sharp sell-off in the global equities. The index opened the day at 24,230.95 and then has managed to recover some of the loss from there. It is currently trading at 24,285, down 0.52 per cent. The advances/declines ratio is at 15:35. This is negative.
Nifty 50 outlook
Nifty (24,285) has some resistance at 24,320. It has to surpass this hurdle to move up towards 24,400 during the day. A rise beyond 24,400 looks less likely at the moment.
Support is around 24,200 which has held well at the opening trades. The index will come under more selling pressure if it declines below 24,200. If that happens, Nifty can fall to 24,100 and 24,200.
Nifty 50 Futures
The Nifty 50 July Futures (24,286) is down 0.4 per cent. The contract has to rise above 24,300 to move up further towards 24,400 during the day. Even if a rise to 24,400 happens during the day today, a rise beyond that level is less likely. We can see the contract turning down again from around 24,400 and fall back towards 24,200 and lower.
The Nifty 50 July Futures contract has support at 24,200. A break below it can be bearish to see 24,050 on the downside.
Trade Strategy
Wait for a rise. Go short at 24,380. Keep the stop-loss at 24,420. Trail the stop-loss down to 24,360 as soon as the contract falls to 24,330. Move the stop-loss further down to 24,325 when the contract touches 24,300. Exit the shorts at 24,280.
Supports: 24,200, 24,050
Resistances: 24,400, 24,520
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