Nifty 50 September Futures (25,925)
Nifty 50 is inching down slowly. The index tested the psychological 26,000 mark on Tuesday but did not get a strong follow-through rise above it. Nifty is currently trading at 25,913, down 0.10 per cent.
The advances/declines ratio is at 10:40. This leaves the chances high for a near-term dip before a fresh rise takes the Nifty above 26,000.
Nifty 50 outlook
On the charts, the intraday picture is weak. Resistance for the Nifty (25,913) is around 26,000. A fall to 25,800 looks likely during the day. The price action thereafter will need a close watch.
If the index manages to rise back from around 25,800, a revisit of 26,000 is possible. That in turn will increase the chances of breaking above 26,000. Such a break can take the Nifty up to 26,200.
But if the Nifty declines below 25,800, the downside can extend up to 25,700. Thereafter a reversal is possible.
Nifty 50 Futures
The Nifty 50 September Futures contract (25,925) is down 0.13 per cent. The index can fall to 25,800-25,750 in the coming sessions. But after this fall, a fresh leg of rally from the 25,800-25,750 support zone can take the contract back to 26,000 in the coming sessions,
Resistance is around 26,000. A strong break above 26,000 is needed for the Nifty 50 September Futures contract to clear the way for a rise to 26,200.
Trade Strategy
High risk appetite traders can go short when the contract falls below 25,900. Keep the stop-loss at 25,930. Trail the stop-loss down to 25,875 as soon as the contract falls to 25,855. Move the stop-loss further down to 25,850 when the contract touches 25,835. Exit the shorts at 25,820.
Supports: 25,900, 25,800
Resistance: 26,000, 26,200