Nifty 50 September Futures (25,406)

Nifty 50 has been stable, and range bound over the last few days. The index has been oscillating between 25,290 and 25,450 since Friday last week.

Within this range, it is currently trading at 25,375, down marginally by 0.03 per cent. The advances/declines ratio is at 25:25. This gives a mixed picture. It indicates that the current range can continue to remain intact.

Nifty 50 outlook

As mentioned above 25,290-25,450 is the trading range for now. On intraday charts, the outlook is unclear. The Nifty can go either way from here.

We may have to wait for a breakout on either side of the 25,290-25,450 range to get clarity on the next move. A break above 25,450 can take the Nifty up to 25,500-25,600 and higher in the coming sessions.

On the other hand, a break below 25,290 can drag the index down to 25,200-25,150.

The bias is positive to breach 25,450 and rise in the coming sessions. But whether this rise will happen from here itself or after a dip to 25,200 is not very clear at the moment.

Nifty 50 futures

The Nifty 50 September Futures (25,406) is down 0.14 per cent. Immediate support is at 25,385. A break below it can take the contract down to 25,350 or 25,300. A fall below 25,300 might be less likely.

Resistance is in the 25,480-25,500. A break above 25,500 will be bullish for a rise to 25,600 and higher.

Trade strategy

Traders can wait for a rise and go long after the contract breaks above 25,500. Keep the stop-loss at 25,470. Trail the stop-loss up to 25,525 as soon as the contract moves up to 25,545. Move the stop-loss further up to 25,550 when the contract touches 25,565. Exit the long positions at 25,580.

Supports: 25,385, 25,300

Resistances: 25,500, 25,600

Related Topics