Nifty 50 September futures (25,968)

The Nifty 50 is managing to hold higher. The index is trading marginally up by 0.05 per cent today. It is currently at 25,952. The advances/ declines ratio is at 25:25. This gives a mixed picture. It also indicates that the index can go either way during the day.

Nifty 50 outlook

The overall outlook is bullish. The price action since yesterday indicates that the index lacks strong follow-through buying. But at the same time, there are buyers to limit the downside. That leaves the bias positive for the index.

Support is in the 25,900-25,850 region. As long as the index stays above this support, the outlook will remain bullish. Nifty can rise to 26,200 in the coming sessions. A break above the psychological resistance level of 26,000 can trigger this rise.

The index will come under pressure for a fall only if it declines below 25,850. If that happens, Nifty can touch 25,800-25,780 on the downside.

Nifty 50 futures

The Nifty 50 September futures (25,968) is up 0.18 per cent. The contract has support in the 25,900-25,850 region. The contract can rise to 26,100 in the coming sessions. The price action, thereafter, will need close watch.

Failure to breach 26,100 can drag the contract down to 25,900 and even 25,800 later this week. However, that fall will just be a correction within the overall uptrend.

For now, the preference will be to allow for a rise to 26,100 and then watch the price action.

Trade strategy

Traders can go long on dips at 25,920 and 25,880. Keep the stop-loss at 25,820. Trail the stop-loss up to 25,960 when the contract moves up to 25,990. Move the stop-loss further up to 26,010, when the contract touches 26,040.  Exit the longs at 26,080.

Supports: 25,900, 25,850

Resistances: 26,100, 26,200

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