Nifty 50 October Futures (24,493)
Nifty 50 is hovering above an important support level of 24,350. Although it manages to sustain above this support, the index is not getting a strong follow-through rise. Nifty is currently trading flat at 24,436. The advances/declines ratio is at 30:20. If this trend sustains, then there is a possibility of seeing a bounce from here. We will have to wait and watch.
Nifty 50 outlook
The region between 24,400 and 24,350 is a strong support zone, and it is holding well for now. However, Nifty is struggling to breach the 24,650-24,700 resistance zone. Only a strong break above 24,700 will ease the downside pressure and clear the way for a rise to 24,800-24,850.
On the other hand, a decisive break below 24,350 can drag the index down to 24,200 and lower. For now, it is a wait-and-watch situation.
Nifty Futures
The Nifty 50 October Futures (24,493) is marginally up by 0.02 per cent. Crucial support is around 24,400.
Immediate resistance is at 24,550. A break above it can take the contract up to 24,700. A further break above 24,700 will extend the rise to 24,800.
On the other hand, selling pressure will increase if the contract breaks below 24,400. A sharp fall to 24,200-24,100 is possible.
Trade Strategy
We suggest traders stay out of the market for now. Go short only if the contract breaks below 24,400. Keep the stop-loss at 24,430. Trail the stop-loss down to 24,380 as soon as the contract falls to 24,360. Revise the stop-loss lower to 24,350 when the contract touches 24,330. Exit the shorts at 24,310.
Support: 24,400, 24,200
Resistances: 24,550, 24,700