Nifty 50 June Futures (23,401)

Nifty 50 has come down sharply after opening with a wide gap-up at 23,480.95. The index made a high of 23,481.05 and has come off giving back all the opening gains. It is currently trading at 23,400, up 0.33 per cent. The advances/declines ratio is at 34:16. This leaves the bias positive.

Nifty 50 outlook

Nifty has been struggling to get a sustained break above 23,400 all through this week. At time same time the index is getting support around 23,200 also. That leaves the outlook mixed for the Nifty in the short-term.

A sustained break above 23,400 and a subsequent rise past 23,500 will now be needed to strengthen the bullish case. Only then a rise to 23,700-23,800 will come into the picture.

On the other hand, Nifty will come under pressure if it breaks below 23,200. Such a break can take it down to 23,000-21,800 in the short-term.

For now, the direction of move is not clear. So, it is better to stay out of the market.

Nifty 50 Futures

The Nifty 50 June Futures (23,401) is up 0.19 per cent. The contract has resistance at 23,520. Supports are at 23,300 and 23,200. So broadly, 23,200 to 23,520 can be the trading range for some time.  A breakout on either side of this range will decide the next leg of move.

A break above 23,520 will be bullish. It can take the contract up to 23,800-23,900. On the other hand, a break below 23,200 will be bearish for a fall to 23,000-21,900.

Trade Strategy

Since the market is oscillating in a range, we suggest traders to stay out of the market for some time.

Supports: 23,300, 23,200

Resistances: 23,520, 23,600