Nifty 50 is attempting to recovering after witnessing a fall on Tuesday. The index opened lower but has risen back from the intraday low of 24,777. It is currently trading at 24,909, up 0.23 per cent. The advances/declines ratio is at 32:18. This is positive.
Nifty 50 Outlook
Nifty (24,909) as an immediate resistance in the 24,950-25,000 region. A strong break above 25,000 is needed to strengthen the momentum and move higher. Such a break can take the Nifty 50 index up to 25,200 in the coming sessions.
Support is in the 24,800-24,780 region which is holding well for now. Nifty will come under pressure for more fall only if it declines below 24,780. If that happens, the index can fall to 24,600-24,550.
Nifty 50 Futures
The Nifty 50 June Futures (24,950) is up 0.33 per cent. The contract has risen back well from its intraday low of 24,815. Intraday supports are at 24,860 and 24,780. Resistance is in the 25,030-25,060. So broadly, 24,780-25,060 can be the trading range for now. A breakout on either side of 24,780 or 25,060 will decide the next leg of move.
A break above 25,060 will be bullish. Such a break can take the Nifty 50 June Futures contract up to 25,350 and even higher. On the other hand, a break below 24,780 can drag the contract down to 24,600 and even lower.
Trade Strategy
Since a broad range is visible now, traders can stay out of the market now. Go long only on a break above 25,060. Keep the stop-loss at 24,960. Trail the stop-loss up to 25,100 as soon as the contract goes up to 25,150. Move the stop-loss further up to 25,180 and 25,250 when the contract touches 25,220 and 25,280 respectively. Exit the long positions at 25,320.
Supports: 24,860, 24,780
Resistances: 25,060, 25,300