opened with a wide gap-down today and is trading lower over a per cent now at 24,625. Increasing geo-political tensions after Israel’s attach on Iran is weighing on the markets. Nifty made an intraday low of 24,473 and has risen back well from there. This indicates the presence of buyers at lower levels. We will have to wait and see if it is getting a strong follow-through rise during the day or not. The advances/decline ratio is at 3:47. This keeps the sentiment negative.
Nifty has support at 24,500 which seems to be holding well for now. If the Nifty manages to sustain above this support, a rise to 24,750-24,850 can be seen in the coming sessions.
Nifty will come under more selling pressure only if it declines below 24,500 again. A sustained fall below 24,500 can drag it down to 24,350.
The Nifty 50 June Futures (24,665) is down about 1.1 per cent. The contract has risen back very well from its intraday low of 24,575. But resistance is around 24,730. The contract has to breach this hurdle decisively in order to gain some strength. Only then a rise to 24,800 and higher levels will come into the picture.
As long as the contract trades below 24,730, there is a danger of seeing 24,400 on the downside.
Nifty 50 has bounced from a key support, but the Nifty 50 Futures contract has a key resistance ahead. Since both are giving diverse signal, we suggest traders to stay out of the market. See how the market closes for the week today and trades can be taken accordingly next week.
Supports: 24,575, 24,400
Resistances: 24,730, 24,800