Nifty 50 October Futures (25,220)
Nifty 50 has begun the week on a positive note. The index has risen well above the psychological 25,000 mark. It is currently trading at 25,104, up 0.55 per cent. The advances/declines ratio is at 35:15. This is positive.
Nifty 50 outlook
The strong bounce above 25,000 is a positive. But it is important to see if the index can sustain this and get a strong follow-through buying from here or not. Immediate resistance is at 25,150. A break above it can take the index up to 25,250-25,300 in the coming sessions.
A fall below 25,000 during the day will turn the intraday outlook bearish. That in turn will drag the contract down to 24,900 and even lower.
Nifty 50 futures
The Nifty 50 October Futures (25,220) is up 0.68 per cent. The contract has resistance at 25,250. A break above it will be bullish to see a rise to 25,350-25,400.
Failure to breach 25,250 and a fall below 25,150 will be bearish for a fall to 25,000 and lower.
Trade strategy
Traders can go long only on a break above 25,250. Keep the stop-loss at 25,210. Trail the stop-loss up to 25,275 as soon as the contract goes up to 25,290. Move the stop-loss further up to 25,305 when the contract touches 25,320. Exit the long positions at 25,350.
Supports: 25,000, 24,800
Resistances: 25,250, 25,400