Nifty 50 is managing to sustain above 25,000. However, the index seems to be lacking a strong follow-through buying. It is currently trading at 25,070, up 0.22 per cent. The advances/declines ratio is at 22:28. This leaves the bias negative and can keep alive the danger of dragging the Nifty below 25,000.
Nifty 50 outlook
Intraday resistance is in the 25,150-25,200 region. Above that 25,300 will be a higher resistance. Nifty has come down after making an intraday high of 25,143 in early trades. That keeps the bias negative.
Support is in the 25,000-24,950 region. A break below 24,950 can take the Nifty down to 24,900 initially and then to 24,800-24,750 eventually.
The price action thereafter will need a close watch for a reversal.
Nifty 50 Futures
The Nifty 50 October Futures (25,224) is up 0.2 per cent as of now. The contract is coming down from a high of 25,299. Resistance is in the 25,300-25,350 region which is holding well as of now.
Supports are at 25,170 and 25,130. A break below 25,130 can take the contract down to 24,900 in the coming sessions.
A strong rise above 25,350 is needed to turn the outlook bullish.
Trade Strategy
Traders can go short now at 25,224. Add more shorts on a rise at 25,270. Keep the stop-loss at 25,330. Trail the stop-loss down to 25,205 as soon as the contract falls to 25,180. Move the stop-loss further down to 25,030 when the contract touches 24,980. Exit the shorts at 24,950.
Supports: 25,130, 24,900
Resistances: 25,300, 25,350