Nifty 50 continues to trade under pressure. The index has begun the week with a wide gap-down open. It opened the day at 23,884.60 and is currently trading at 23,820, down 0.32 per cent. The advances/declines ratio is at 11:37. This is negative. If this continues, more falls can be seen during the day.
Nifty 50 Outlook
The outlook is negative. Resistance is in the 23,880-23,915 region and then around 23,950. Nifty can fall to 23,700 in the coming sessions. Intermediate support is at 23,780. A break below it can drag the index lower.
Nifty has to rise past 23,950 to get some relief decisively. But that looks unlikely at the moment.
Nifty 50 Futures
The Nifty 50 September Futures (23,904) is down 0.58 per cent. Intraday resistance is in the 23,950-23,970 region. This resistance can cap any bounce during the day.
The contract can fall to 23,820-23,800 during the day. A break below 23,800 can then drag it down to 23,700.
The region between 24,000 and 24,050 is a key resistance. The Nifty 50 September Futures contract has to rise above 24,050 to become positive.
Trade Strategy
Positional trades can be considered at the moment.
Traders can go short now at 23,904. Add more shorts on a rise at 23,935. Keep the stop-loss at 23,980 initially. Trail the stop-loss down to 23,880 as soon as the contract goes down to 23,855. Revise the stop-loss lower to 23,840 and 23,785 when the contract touches 23,805 and 23,755, respectively. Exit the short positions at 23,740.
Supports: 23,780, 23,700
Resistances: 23,970, 24,050