Nifty 50 September Futures (24,944)

Nifty 50 is coming down after opening higher. The index opened the day at 24,999 and then touched a high of 25,014.80. From there it has come down now to 24,918 and is down about 0.1 per cent for the day. The advances/declines ratio is at 22:28. This is indicating that the bias could be negative. If this trend remains, then there could be more fall during the day.

Nifty 50 outlook

Failure to rise past 25,000 and a reversal thereafter is a negative. That indicates lack of fresh buyers to take the index higher. It also indicates the presence of strong sellers at higher levels.

Immediate resistance is around 24,950. Above that 25,000 will continue to remain as a key resistance. We see good chances for the Nifty to fall towards 24,800 and even 24,750 in the coming sessions.

A sustained rise above 25,000 will be needed to ease the downside pressure. Only then the sentiment will turn positive to take the index higher.

Nifty 50 Futures

The Nifty 50 September Futures (24,944) is down 0.16 per cent. The contract rose to a high of 25,045 and then has come down from there. The region between 25,000 and 25,050 will be a good resistance now. As long as the contract trades below 25,000 the bias will remain negative.

Intermediate support is at 24,880. A break below it can take the contract down to 24,800 during the day.

Trade Strategy

Traders with high-risk appetite can wait for a rise and go short at 24,980. Keep the stop-loss at 25,030. Trail the stop-loss down to 24,960 as soon as the contract falls to 24, 930. Move the stop-loss further down to 24,920 when the contract touches 24,905. Exit the shorts at 24,880.

Supports: 24,880, 24,800

Resistances: 25,000, 25,050

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