Nifty 50 September Futures (25,465)

Nifty 50 has begun the week on a positive note. The index has risen and is now trading at 25,427, up 0.28 per cent. The advances/declines ratio is at 34:16.

This keeps the bias positive. The US Federal Reserve meeting outcome on Wednesday will be an important event to watch this week. It can set the trend for the equity markets going forward.

Nifty 50 outlook

Nifty has a resistance at 25,470. A strong break above it can boost the bullish momentum. Such a break can take the index up ton 25,700-25,800 in the next few days.

But if the Nifty fails to breach 25,470, it can dip to 25,350-25,300. In that case, it can remain in a range of 25,300-25,470 for a few sessions.

The bias is positive. So, we expect the Nifty to break 25,470 and rise if not immediately, but eventually.

Nifty 50 futures

The Nifty 50 September Futures contract (25,465) is up 0.37 per cent. Intraday support is at 25,420. The contract can rise to 25,570 in the coming sessions.

If it breaks below 25,420, then a fall to 25,350-25,300 is possible. The near-term outlook will turn negative only if the contract declines below 25,300. If that happens, the Nifty 50 September Futures contract can fall to 25,200 and lower.

Trade strategy

Traders can go long now at 25,465 and accumulate on dips at 25,440. Keep the stop-loss at 25,390. Trail the stop-loss up to 25,490 as soon as the contact moves up to 25,510. Move the stop-loss further up to 25,520 when the contract touches 25,545. Exit the long positions at 25,570.

Supports: 25,420, 25,350

Resistances: 25,580, 25,700

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