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Nifty 50 October Futures (24,265)
The sell-off in the Nifty 50 continues. The index has declined below the key support level of 24,350. It is currently trading at 24,268, down 0.54 per cent. The advances/declines ratio is at 15:35. This is clearly negative and indicates that more fall could be on the cards.
Nifty 50 outlook
The outlook is negative. Nifty (24,268) can fall to 24,150. The price action thereafter will need a close watch. There are good chances to see a bounce back from around 24,150 towards 24,300 again. As such the price action around 24,150 will need a very close watch.
In case Nifty breaks below 24,150, the fall can extend to 24,000.
Nifty 50 Futures
The Nifty 50 October Futures (24,265) is down 0.77 per cent. Immediate support is around 24,230. Need to see if the contract is sustaining above it or not.
If the contract manages to bounce from around 24,230, there are good chances for a recovery towards 24,400-24,400 during the day.
But a break below 24,230. It can then drag the Nifty 50 October Futures contract down to 24,100 and lower.
Trade Strategy
Go short only below 24,230. Keep the stop-loss at 24,270. Trail the stop-loss down to 24,200 as soon as the contract falls to 24,180. Move the stop-loss further down to 24,170 when the contract touches 24,145. Exit the shorts at 24,120.
Support: 24,230, 24,100
Resistances: 24,300, 24,400
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