Nifty 50 December Futures (23,723)

Nifty 50 is continuing to trade stable. The index is not gaining momentum to get a decisive break above 23,900. It touched a high of 23,854 in early trades today and has come down from there. Nifty is currently trading at 23,715, marginally down by 0.04 per cent.

Nifty 50 Outlook

Nifty has been stable and range bound since the beginning of the week. 23,650-23,900 has been the trading range for this week. We may have to wait for a breakout on either side of this range to get clarity on the next leg move.

A break above 23,900 can take the index up to 24,100. On the other hand, a break below 23,650 can drag the index down to 23,500 and lower.

Nifty 50 Futures

The Nifty 50 December Futures (23,723) is down 0.2 per cent. The contract has failed in its several attempts to breach 23,900 this week. Looking at the price action on the chart, the bias is negative. 

Support is at 23,650. A break below it can take the contract down to 23,550 and lower.

To avoid this fall and turn the outlook bullish, the Nifty 50 December Futures contract has to get a sustained break above 23,900. That will open the doors for a fresh rise to 24,100 and higher.

Trade Strategy

Go short only below 23,650. Keep the stop-loss at 23,680. Trail the stop-loss down to 23,625 as soon as the contract falls to 23,605. Move the stop-loss further down to 23,590 when the contract touches 23,570.  Exit the shorts at 23,550.

Supports: 23,650, 23,550

Resistances: 23,900, 24,100