Nifty 50 continues to oscillate up and down. Although the near-term picture remains unclear, failure to break below 24,700 indicates the absence of strong sellers in the market. Nifty has risen in the early trades today and is now currently trading at 24,857, up 0.27 per cent.
Nifty 50 Outlook
Nifty has an immediate resistance at 24,930-24,950. A strong break above 24,950 is needed to boost the bullish momentum. Such break can take the Nifty up to 25,200-25,250 in the coming sessions.
Key support is in the 24,750-24,700 region. Nifty will come under pressure for a fall to 24,600-24,550 only on a break below 24,700.
Nifty 50 Futures
The Nifty 50 June Futures (24,891) is up 0.36 per cent. Support is in the 24,800-24,750 region which is holding well for now. If the bounce today sustains, there are good chances to see an intraday rise to 24,950 and 25,050.
Key resistance is around 25,060. The Nifty 50 June Futures contract has to surpass this hurdle to clear the way for a rise to 25,300 and higher.
The intraday outlook will turn negative only of the contract declines below 24,750. If that happens, a fall to 24,600-24,550 can be seen.
Trade Strategy
Traders can go long on dips at 24,820 and 24,780. Keep the stop-loss at 24,710. Trail the stop-loss up to 24,850 as soon as the contract goes up to 24,890. Move the stop-loss further up to 24,880 and 24,930 when the contract touches 24,910 and 24,950 respectively. Exit the long positions at 24,980.
Supports: 24,800, 24,750
Resistances: 24,950, 25,060