Nifty 50 July Futures (24,145)

Nifty 50 is managing to hold above the psychological 24,000 mark. The index opened lower but has risen back well from the low 23,992.70. It is currently trading at 24,086, up 0.31 per cent. The advances/declines ratio is at 34:16. This indicates that the bias is positive.

Nifty 50 outlook

The outlook is bullish. Strong support is in the 24,000-23,950 region. Nifty can rise to 24,150-24,200 during the day. A strong break above 24,200 will boost the momentum. Such a break can take the index up to 24,400 and higher this week.

Nifty has to break below 23,950 to turn the near-term outlook negative. If that happens, a fall to 23,800 can be seen. But such a fall is less likely.

Nifty 50 Futures

The Nifty 50 July Futures (24,145) is trading marginally higher. Intraday resistance is around 24,200. As long as the contract trades below this resistance, an intermediate dip to 24,000 cannot be ruled out. However, a fall beyond 24,000 is less likely.

As such we can expect the Nifty 50 July Futures contract to reverse higher from around 24,000 again. That bounce can take the contract up to 24,200 first. An eventual break above 24,200 will then take the contract up to 24,400-24,450.

The Nifty 50 July Futures contract has to decline below 24,000 to turn negative. Only then a fall to 23,800 and lower levels will come into the picture.

Trade strategy

Traders can go long only on a break above 24,200. Keep a stop-loss at 24,170. Trail the stop-loss up to 24,230 as soon as the contract moves up to 24,260. Move the stop-loss further up to 24,270 when the contract touches 24,295. Exit the longs at 24,320.

Supports: 24,000, 23,900

Resistances: 24,240, 24,400

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