Nifty 50 September Futures (25,373)

Nifty 50 has begun the week on a positive note. The index opened with a gap-up at 25,333.60 and has come down from there slightly. It is currently trading at 25,310, up 0.31 per cent.

The advances/declines ratio is at 35:15. This is positive.

Nifty 50 outlook

The overall uptrend is intact. Immediate support is around 25,200. Below that 25,000 will be a very good near-term support. Resistance is at 25,400 which can be tested in the coming sessions. A strong break above 25,400 can take the Nifty up to 25,500 and higher this week.

If the Nifty falls below 25,200 we can get a dip to 25,000. The region between 25,000 and 24,900 is a strong support. Nifty has to fall below 24,900 to turn the near-term outlook negative. But that looks less likely.

Nifty 50 futures

The Nifty 50 September Futures (25,373) is trading flat. The outlook is bullish. The contract has good support in the 25,350-25,300 region. An intraday dip to this support zone cannot be ruled out. But a fall beyond 25,300 is less probable.

As such we can expect the Nifty 50 September Futures contract to reverse higher from the 25,350-25,300 support zone and rise towards 25,500 in the coming sessions.

The near-term outlook will turn negative only if the contract declines below 25,300. In that case, a fall to 25,200 can be seen.

Trade strategy

Traders can wait for dips. Go long at 25,340 and 25,310. Keep the stop-loss at 25,270. Trail the stop-loss up to 25,350 as soon as the contract moves up to 25,395. Move the stop-loss further up to 25,410 when the price touches 25,445. Exit the longs at 25,480.

Supports: 25,300, 25,200

Resistances: 25,400, 25,500.

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