Nifty 50 began today’s session slightly lower at 24,823 versus Friday’s close of 24,852. The index is now hovering around 24,840.

The advance/decline ratio stands at 19/31, giving the index a bearish bias. Tata Consumer Products, up 1.8 per cent, is the top gainer whereas ONGC, down 3.8 per cent, is the top loser.

In line with the benchmark index, the mid- and small-cap indices are in the red.

Among the sectoral indices, Nifty PSU Bank and Nifty Metal are the top losers by declining 1.5 and 1.3 per cent respectively. Nifty FMCG is the top gainer by advancing 0.9 per cent.

Among the major Asian equity indices, Nikkei 225 (36,030), ASX 200 (7,980), Hang Seng (17,090) and KOSPI (2,535) are down between 0.4 and 2 per cent.

Nifty 50 futures

The September futures of Nifty 50 began the session lower at 24,865 versus Friday’s close of 24,906. It is now hovering around 24,900.

While the Nifty futures appears to attempt for a recovery, it has a resistance at 24,940. Only a breakout of this level can turn the intraday trend bullish. Resistance above 24,940 is at 25,150.

Nevertheless, until 24,940 is taken out, the bias will be bearish.

On the other hand, 24,800 is acting as a support. But as it stands, the probability of this level holding up is low. If this is invalidated, the contract can drop to 24,500.

Trading strategy

Stay out for now. Short Nifty futures if the slips below the support at 24,800. Target and stop-loss can be 24,500 and 24,950 respectively.

But if the contract breaks out of 24,940, buy with a stop-loss at 24,880. Book profits at 25,150.

Supports: 24,800 and 24,500

Resistance: 24,940 and 25,150

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