Nifty 50 is stable. The index has stayed afloat after the sharp fall from Monday’s high of 24,999.75. It is currently trading flat at around 24,842. The advances/ declines ratio is at 19:31. This leaves the bias negative. If this trend continues, then Nifty could see a further fall during the day.
Nifty 50 outlook
The immediate outlook is mixed for the Nifty 50 (24,842). Immediate support is at 24,780. A break below it can take the Nifty down to 24,700 during the day. The sell-off could intensify to 24,600 if the Nifty fails to bounce from around 24,700.
Intermediate resistance is at 24,900. A break above it can take the Nifty up to 25,000. A decisive rise above 25,000 is now needed to strengthen the bullish case and take it further up to 25,200-25,300.
Overall, 24,700 to 25,000 will be the wide trading range for the Nifty now. A breakout on either side of this range is needed to get clarity on the next move.
Nifty 50 futures
The Nifty 50 August futures (24,912) is trading flat. The intraday outlook is unclear. Immediate resistance is at 24,950. A break above it and a subsequent rise above 25,000 will only boost the momentum to see 25,150 on the upside.
Support is in the 24,820-24,800 region. A break below it can drag the Nifty 50 August futures contract down to 24,750.
Trade Strategy
Since the outlook is unclear, we suggest traders stay out of the market today.
Supports: 24,800, 24,750
Resistances: 24,950, 25,000