Nifty 50 began today’s session with a gap-down at 25,094 versus yesterday’s close of 25,145. It slipped further after opening and is now hovering around 24,975, down 0.7 per cent.

The advance/decline ratio stands at 18/32, giving the index a bearish bias. Bajaj Finance, up 1.8 per cent, is the top gainer whereas State Bank of India, down 1.6 per cent, is the top loser.

In line with the benchmark index, the mid- and small-cap indices are in the red. Also, barring Nifty Realty, up 0.1 per cent, all other sectors have dropped so far today.

Nifty PSU Bank and Nifty Oil & Gas are the top losers by declining 1.5 and 1.2 per cent respectively.

Among the major equity indices, ASX 200 (8,020) is up 0.5 per cent. But others like Nikkei 225 (36,500), Hang Seng (17,440) and KOSPI (2,555) are down between 0.1 and 0.8 per cent.

Nifty 50 futures

The September futures of Nifty 50 began the session lower at 25,190 versus yesterday’s close of 25,237. It is now hovering around 25,040, down 0.8 per cent.

The contract has now fallen below the support at 25,100. This is a bearish signal. Nifty futures is likely to extend the fall from here.

Notable support levels are at 25,000 and 24,820. Given the current momentum, the support at 25,000 may be taken out easily.

In case the contract recovers, only a rally above 25,100 will be bullish. But as it stands, this looks less likely. Resistance above 25,100 is at 25,225.

Trading strategy

Short Nifty futures now at 25,040. Add shorts if the price rises to 25,100. Place stop-loss at 25,225. When the contract drops below 25,000, revise the stop-loss to 25,150. Exit at 24,820.

Supports: 25,000 and 24,820

Resistance: 25,100 and 25,250

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