Nifty 50 December Futures (24,366)

Nifty 50 has declined sharply after being stable in a narrow range all through the week. It is currently trading at 24,436, down 0.82 per cent. The advances/declines ratio is at 7:43. This is very negative. If this sustains, more fall can be seen during the day.

Nifty 50 Outlook

The fall below 24,400 is a negative. There is room to fall more from here to test 24,250 during the day. However, the level of 24,250 is a strong support which can halt the fall. A strong bounce from there can take the Nifty 50 index up to 24,500 again.

Nifty will come under more danger to see 24,000 and lower only if it declines below 24,250. That looks less likely. So, the price action around 24,250 will need a close watch today.

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Nifty 50 Futures

The Nifty 50 December Futures (24,366) is down sharply by 1.15 per cent. There is an important support at 24,300 which will need a close watch. A bounce from around 24,300 and a strong follow-through rise above 24,400 will give a breather. If that happens, we can expect a rise back to 24,600.

But a break below 24,300 will be very bearish. It can then drag the contract down to 24,000 and lower.

Trade Strategy

Stay out of the market now. Wait and watch the price action around 24,300 and how the market closes for the day today. Trades can be taken accordingly.

Supports: 24,300, 24,000

Resistances: 24,400, 24,600