Nifty 50 has been stuck in a narrow range since the beginning of the week. The index has been range-bound between 24,750 and 25,000. It is currently moving up within the rangey. Nifty is now trading at 24,917, up 0.24 per cent. The advance-decline ratio is 37:13. This is a positive sign, but remains to be seen if it can sustain to take the index above 25,000.
Nifty 50 outlook
As mentioned, Nifty (24,998) has been range-bound while moving up. The sideways range remains intact. A breakout on either side of 24,750-25,000 will determine the next leg of move.
A break above 25,000 can take the Nifty up to 25,150-25,200. On the other hand, a break below 24,750 can drag the index down to 24,500.
Nifty 50 futures
The Nifty 50 August futures (24,998) is up 0.27 per cent for now. Intraday resistance can be at 25,020. A decisive break above this resistance will be bullish. It can then take the contract up to 25,150-25,200 in the coming sessions.
But failure to breach 25,020 and a reversal can drag the contract down to 24,900 and 24,850 during the day.
Trade strategy
Traders have to wait for a breakout. Go long only on a break above 25,020. Keep the stop-loss at 24,980. Trail the stop-loss up to 25,050 as soon as the contract moves up to 25,090. Move the stop-loss further up to 25,110 when the contract touches 25,140. Exit the long positions at 25,170.
Supports: 24,900, 24,850
Resistances: 25,020, 25,200