Nifty 50 began today’s session higher at 25,251 versus yesterday’s close of 25,199. But it has now moderated to 25,200, remaining flat at the end of the first hour of trade.

 The advance/decline ratio stands at 27/23, giving the index a slight bullish bias. UltraTech Cement, up 1.4 per cent, is the top gainer whereas Nestle India, down 0.8 per cent, is the top loser.

Although the benchmark index is flat, the mid- and small-cap indices are in the green. Nifty Media and Nifty Healthcare, up 0.9 per cent each, are the top gainers. On the other hand, Nifty Realty, down 0.3 per cent, is the worst performing sectoral index.

Among the major equity indices, ASX 200 (7,960) is up 0.2 per cent. But others like Nikkei 225 (36,540), Hang Seng (17,350) and KOSPI (2,570) are down between 0.3 and 1.3 per cent.

Nifty 50 futures

The September futures of Nifty 50 began the session with a gap-up at 25,350 versus yesterday’s close of 25,248. It is now hovering around 25,275, up 0.1 per cent.

The contract bounced off 25,200 yesterday and is now trading above another key intraday level of 25,250. So, a fall from the current level is less likely. 

At the same time, there are no solid signs of a rally from here. There are resistance levels at  25,350 and 25,420.

Given the prevailing price action, there is a good chance for Nifty futures to consolidate between 25,200 and 25,420. The direction of the breach of this price band will decide the next leg of trend.

A breakout of 25,420 can lead to a rally to 25,800 whereas a breach of the support at 25,200 can drag the contract quickly to 25,000 and then possibly to 24,750.

Trading strategy

There is a lack of clarity in the intraday trend. So, we suggest staying out until the 25,200-25,420 price band is invalidated.

Supports: 25,250 and 25,200

Resistances: 25,350 and 25,420

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