Nifty 50 July Futures (24,678)

Nifty 50 has recovered very well after opening with a wide gap-down. The index opened at 24543.80 and touched an intraday low of 24,515.10. From there it has risen back very well recovering all the loss. Nifty is currently trading at 23,652, up 0.15 per cent. The advances/declines ratio is at 31:19. This is positive.

Nifty 50 outlook

Nifty (24,515) has good support in the 24,550-24,500 region. This has held very well at the opening trades. As long as the index stays above 24,500, the bias will remain bullish. Some resistance is in the 24,660-24,680 region. A break above 24,680 can take the Nifty up to 24,730-24,750 in the coming sessions.

The near-term outlook will turn negative only of the Nifty declines below 24,500. If that happens, a fall to 24,400 and lower levels is possible.

Nifty 50 Futures

The Nifty 50 July Futures (24,678) contract is up 0.12 per cent. The contract has risen back sharply for the intraday low of 24,542.70 recovering all the loss.

The outlook is bullish. Intermediate resistance is at 24,700. A break above it can take the contract up to 24,780-24,800 in the coming sessions.

Immediate support is in the 24,620-24,600 region. Below that 24,550-24,520 is the next strong support. The contract has to fall below 24,500 to become bearish. That looks less likely.

Trade Strategy

Traders can go long on a break above 24,700. Keep the stop-loss at 24,670. Trail the stop-loss up to 24,720 as soon as the contract moves up to 24,740. Move the stop-loss up to 24,745 when the contract touches 24,760. Exit the long positions at 24,780.

Supports: 24,600, 24,550

Resistances: 24,700, 24,800

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