Nifty 50 October Futures (25,147)

Nifty 50 is trading lower today. The index is still struggling to get a strong follow-through rise above 25,200. It is currently trading at 25,062, down 0.26 per cent. The advances/declines ratio is at 13:37. This keeps the bias negative.

Nifty 50 outlook

Nifty touched a high of 25,212 in the early trades and then has come down sharply giving back all the gains. As mentioned above, Nifty has been struggling to breach 25,200 decisively since last week. That leaves the chances high for the index declining below 25,000 in the coming sessions and fall to 24,900 and even lower.

A strong rise above 25,250 is needed for the index to gain bullish momentum. Only then a rise to 25,400 and higher levels will come into the picture.

Nifty 50 Futures

The Nifty 50 October Futures contract (25,147) touched a high of 25,287 and then has come down from there. The region between 25,250-25,300 is acting as a strong resistance. The level of 25,200 can now act as a good intraday resistance which can cap the upside for the day now.

The Nifty 50 October Futures can fall to 25,000-24,900 in the coming sessions.

A strong rise above 25,300 is needed to become bullish and rise to 25,400 and higher.

Trade Strategy

Traders can wait for a rise. Go short at 25,180. Keep the stop-loss at 25,220. Trail the stop-loss down to 25,160 as soon as the contract falls to 25,130. Move the stop-loss further down to 25,110 when the contract touches 25,090. Exit the shorts at 25,060.

Supports: 25,000, 24,900

Resistances: 25,200, 25,300

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