Nifty 50 began today’s session with a gap-down at 25,453 versus Tuesday’s close of 25,797. But it has now recovered to 25,580. So far today, it is down 0.9 per cent.

The advance/decline ratio of the benchmark index currently stands at 13/37, a bearish sign. JSW Steel, up 3 per cent, is the top gainer whereas BPCL, down 2.8 per cent, is the top loser.

In line with Nifty 50, the mid and the small cap indices have depreciated so far today. Also, barring Nifty Metal (up 0.4 per cent) and Nifty Media (up 0.3 per cent), all other sectors are in the red. So, the sell-off seems to be broad-based.

The Asian equity market appears mixed. Nikkei 225 (38,650) is up 2.3 per cent whereas ASX 200 (8,190) is flat and Hang Seng (21,750) has lost 3.1 per cent.

Nifty 50 futures

The October futures of Nifty 50 began the session lower at 25,670 versus Tuesday’s close of 25,969. It is now hovering around 25,730, down nearly 1 per cent.

The chart appears weak for intraday and further fall is likely to occur. From the current level of 25,730, the nearest support for Nifty futures is the price region between 25,500 and 25,550.

A breach of 25,500 can intensify the sell-off. Support below 25,500 is at 25,200.

On the other hand, if Nifty futures recover from the current level, it can face barriers at 25,850 and 26,000. Only a recovery past 26,000 can turn the outlook positive.

Trading strategy

Short Nifty futures at the current level of 25,730 and also on a rally to 25,850. Place stop-loss at 26,000. Book profits at 25,530.

Supports: 25,500 and 25,200

Resistance: 25,850 and 26,000

Published on October 3, 2024