Nifty is managing to stay afloat. Although the index has come down after seeing a rise initially on Monday this week, it seems to lack strong sellers to drag it down sharply. That keeps the overall bias positive for the Nifty. The index is currently trading at 24,835, up about 0.1 per cent.
The advances/declines ratio is at 27:23. This is positive for now. But if the sentiment turns in favour of the declines, then the Nifty can come under pressure during the day.
Nifty 50 Outlook
Nifty is currently getting support in the 24,750-24,730 region. Resistance is in the 24,950-25,000 region. A strong break above 25,000 is needed to gain bullish momentum. Only then a rise to 25,200-25,250 will come into the picture.
On the other hand, if the Nifty breaks below 24,730, it can fall to 24,600-24,550. For now, 24,730-25,000 can be the trading range. A breakout on either side of this range will then decide the next leg of move.
Nifty 50 Futures
The Nifty 50 June Futures (24,838) contract is trading marginally higher by 0.05 per cent. The contract has cluster of resistances in the 24,900-25,050 region. Support is in the 24,780-24,750 region which is holding well for now.
A strong and sustained rise above 25,050 is needed to ease the downside pressure. Only then the Nifty 50 June Futures contract can rise to 25,300-25,350.
In case the contract breaks below 24,750, it can fall to 24,600-24,500.
Trade Strategy
Since the near-term view is unclear, we suggest traders to stay out of the market.
Supports: 24,750, 24,600
Resistances: 24,900, 25,050