Nifty continues to rise after opening the day with a gap-up. It is currently trading at 24,385, up 0.41 per cent. The advance-decline ratio is at 33:17, indicating positive sentiment
Nifty 50 outlook
The outlook for the Nifty (24,385) is bullish. Strong support is around 24,300. Below that, 24,200 is the next important support.
The index can rise to 24,600 initially and then to 24,700-24,800 in the coming days. The near-term outlook will turn negative only if the index declines below 24,200. If that happens, then there could be a fall to 24,000. But that appears less likely.
Nifty 50 Futures
The Nifty 50 July Futures (24,439) is up 0.35 per cent. The outlook is bullish. Support is around 24,350. The Nifty 50 July Futures contract can rise to 24,530-24,550 in the coming sessions.
The region around 24,550 is an important resistance, where the price action will need a close watch. A reversal from 24,550 can take the contract down to 24,400.
The near-term outlook will turn negative only if the contract declines below 24,350. In that case, the Nifty 50 July Futures contract can fall to 24,300 and even 24,200.
Trade strategy
Traders can wait for dips and go long at 24,380. Keep the stop-loss at 24,330. Trail the stop-loss up to 24,405 as soon as the contract moves up to 24,420. Move the stop-loss further up to 24,465 when the contract touches 24,490. Exit the long positions at 24,510.
Supports: 24,350, 24,300
Resistances: 24,550, 24,700