Nifty 50 September Futures (25,230)
Nifty 50 is trading lower taking cues from the sell-off in the global markets. The Dow Jones Industrial Average in the US had declined 1.5 per cent after the US Purchasing Managers Index (PMI) failed to meet the market expectation.
Nifty opened with a wide gap-down at 25,089.95 and remains lower. It is now trading at 25,129, down about 0.6 per cent. The advances/decline ratio is at 6:42. This is negative.
Nifty 50 outlook
The region between 25,000 and 24,900 is a strong support for the Nifty. The bounce from the intraday low of 25,083 indicates that this support is holding well for now. As long as the Nifty stays above 25,000, there are good chances to see a rise towards 25,200 during the day.
Broadly, 25,000 to 25,200 can be the trading range for some time now.
The outlook will turn negative only if the Nifty declines below 24,900. That in turn can drag the index down to 24,750 and even lower.
Nifty 50 Futures
The Nifty 50 September Futures contract (25,230) is down about 0.5 per cent. The contract fell to a low of 25,142 and then has risen back very well from there.
Support is around 25,130. That has held very well. If this bounce sustains, a rise to 25,300-25,330 is possible during the day.
The contract will come under pressure for more fall only if it declines below 25,130. If that happens, the index can decline to 24,980.
Trading Strategy
Traders can go long on dips at 25,180 and 25,140. Keep the stop-loss at 25,110. Trail the stop-loss up to 25,210 as soon as the contract moves up to 25,230. Move the stop-loss further up to 25,240 when the price touches 25,260. Exit the long positions at 25,280.
Supports: 25,130, 24,980
Resistances: 25,330, 25,400