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Nifty 50 October Futures (25,967)
Nifty is attempting to bounce back after having fallen below the psychological 26,000 level on Monday. The index rose to a high of 25,907 and has come down from there. It is currently trading at 25,827, up marginally by 0.06 per cent. The advances/declines ratio is at 23:27. This is negative now.
Nifty 50 outlook
On the charts, the near-term bias is negative. Support is in the 25,800-25,780 region. A break below 25,780 can drag the Nifty down to 25,600 in the coming sessions.
The index has to get a decisive rise above 26,000 in order to ease the downside pressure. Only then the sentiment will become bullish again for a rise to 26,200 and higher.
Nifty 50 futures
The Nifty 50 October Futures (25,967) is down 0.1 per cent. Resistance is in the 26,000-26,030 region. The contract can fall to 25,900 during the day. What happens after that is going to be crucial.
A break below 25,900 will be bearish for a fall to 25,800. On the other hand, a bounce from around 25,900 can take the Nifty 50 October Futures contract up to 26,000-26,100 again.
Trade strategy
Traders can go short now and on a rise at 25,985. Keep a tight stop-loss at 26,010. Trail the stop-loss down to 25,960 as soon as the contract falls to 25,945. Move the stop-loss further down to 25,940 when the contract touches 25,925. Exit the shorts at 25,910.
Supports: 25,900, 25,800
Resistances: 26,030, 26,200
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