Nifty 50 is trading slightly lower today. The index is trading at 25,026, down 0.14 per cent. The advances/declines ratio is at 23:27. This is negative for now. But if the bias changes in favour of the advances, it could limit the downside in the Nifty. We will have to wait and watch.
Nifty 50 Outlook
The broader picture is positive. However, an intermediate dip to 24,900-24,850 is a possibility that cannot be ruled out. This 24,900-24,850 is a strong support zone which can limit the downside. A fall below 24,850 is unlikely.
Resistance is at 25,120. Nifty has to break this resistance to gain momentum again. That break will then clear the way for the Nifty to target 25,400 and higher in the coming days.
Nifty 50 Futures
The Nifty 50 May Futures (25,049) are down 0.13 per cent. The contract has resistance at 25,150. A break above it can take the contract up to 25,250.
As long as the contract trades below 25,150, a corrective dip to 24,900-24,850 is possible. A fall below 24,850 is unlikely. We can expect the Nifty 50 May Futures contract to reverse higher from this 24,900-24,850 region. So, if this happens first, then that will be a very good buying opportunity.
Trade Strategy
Go long on a break above 25,150. Keep the stop-loss at 25,120. Trail the stop-loss up to 25,175 as soon as the contract goes up to 25,195. Move the stop-loss further up to 25,205 when the contract touches 25,220. Exit the long positions at 25,240.
Supports: 24,900, 24,850
Resistances: 25,150, 25,250