Nifty 50 December Futures (24,680)

Nifty 50 has begun the week on a weak note. The index is down by 0.34 per cent for the day now. It is currently trading at 24,587. The advances/declines ratio is at 15:35. This is negative. It indicates that more fall is on the cards for the day.

Nifty outlook

Nifty has strong support in the 24,550-24,450 region. Though an intraday fall to test this support zone cannot be ruled out, a break below 24,450 is less likely. We can expect the Nifty to rise back either from 24,550 itself or from around 24,450. That leg of rise can take the index up to 24,800 and 25,000 this week.

Nifty 50 Futures

The Nifty 50 December Futures (24,680) is down 0.42 per cent. The contract has supports at 24,630 and 24,550 which can be tested during the day. A fall beyond 24,550 is less likely. We can expect the contract to rise back from 24,630 itself or from around 24,550. That rise can take the contract up to 24,850 again. A break above 24,850 will clear the way for a rise to 25,000 this week.

Trade Strategy

Positional trades with a holding period of one week can be considered at this point of time. Go long now at 24,640 and 24,570. Keep the stop-loss at 24,480 initially. Trail the stop-loss up to 24,720 as soon as the contract goes upto 24,830. Move the stop-loss further up to 24,860 when the contract touches 24,920. Exit the long positions at 24,970.

Supports: 24,630, 24,550

Resistances: 24,850, 25,000