Nifty 50 is trading stable. The price action in the early trades shows there is no strong follow-through buying. Nifty is currently trading at 25,028, down marginally by 0.06 per cent. The advance-decline ratio is 22:28, leaving a negative bias. Unless the trend favours advances, more fall is likely during the day.
Nifty 50 outlook
Nifty (25,028) has strong resistance in the 25,150-25,200 region. The index has to surpass 25,200 decisively to strengthen the bullish case and negate the danger of a fall. Only then will a rise to 25,500 and higher come into picture.
Support is around 24,950. A break below it can drag the Nifty down to 24,800 and lower in the coming sessions. As seen from the charts, the Nifty is very likely to dip and test 24,950. The price action thereafter will indicate whether there is a bounce or not.
Nifty 50 futures
The Nifty 50 September futures (25,054) is down about 0.1 per cent. Intraday support is around 25,000. If the contract manages to sustain above 25,000, it is highly likely to rise to 25,220-25,250 in the coming sessions.
But if the contract declines below 25,000, a fall to 24,850 is possible.
The support at 25,000 is holding well as of now. The Nifty 50 September futures contract has bounced from 25,010. If this bounce sustains, we can see a further rise.
Trade strategy
Assuming that the support at 25,000 will hold during the day, trades with high risk appetite can go long now at 25,054 and accumulate at 25,020. Keep the stop-loss at 24,970. Trail the stop-loss up to 25,085 as soon as the contract moves up to 25,110. Move the stop-loss further up to 25,120 when the contract touches 25,145 on the upside. Exit the longs at 25,180.
Support: 25,000, 25,850
Resistances: 25,220, 25,300