Nifty 50 June Futures (23,600)

Nifty 50 is trading higher. The index opened with a gap-up and is manging to hold higher. It is currently trading at 23,573, up 0.15 per cent. The advances/declines ratio is at 18:32. This is inclined towards bearishness and indicates caution.

Nifty 50 outlook

Nifty (23,573) made a high of 23,618 and has come down from there. The region between 23,550 and 23,520 is a good intraday support. A test of this support during the day cannot be ruled out. A bounce from this 23,550-23,520 support zone can take the index up to 23,600-23,620 again.

A decisive break above 23,620 will boost the momentum and will take the index up to 23,730-23,750.

The intraday outlook will turn negative if Nifty breaks below 23,520. Such a break can take it down to 23,480 first. A further break below 23,480 can drag the index down to 23,400-23,350 again in the coming sessions.

Nifty 50 futures

The Nifty 50 June Future (23,600) is up 0.25 per cent. The contract has cluster of supports in the 23,580-23,550 region. The outlook is bullish to see a rise to 23,700-23,750 during the day.

This bullish outlook will negated if the Nifty 50 June Futures contract declines below 23,550. If that happens, a fall to 23,500 can be seen first. A break below 23,500 can drag the contract down to 23,400 in the coming sessions.

Trade strategy

Traders can go long now at 23,600. Accumulate on dips at 23,570. Keep the stop-loss at 23,530. Trail the stop-loss up to 23,620 as soon as the contract moves up to 23,645. Move the stop-loss further up to 23,655 when the contract touches 23,670.  Exit the long positions at 23,700.

Supports: 23,550, 23,500

Resistances: 23,700, 23,750