Nifty 50 is trading lower. The index is currently trading at 23,976, down 0.12 per cent. The advances/declines ratio is at 19:31. If this trend continues, then more fall is on the cards during the day.

Nifty 50 Outlook

The intraday picture is looking weak. Resistance is around 24,050. The chances are looking high for a fall to 23,800-23,780. The price action thereafter will need a very close watch. A break below 23,780 will be very bearish. If that happens, we can see a fall to 23,600-23,500 this week. On the other hand, a bounce from around 23,800 can take the index back to 23,950 again.

• Read also: Stocks that will see action today: January 6, 2024

Nifty 50 Futures

The Nifty 50 January Futures (24,025) is down 0.27 per cent. The intraday outlook is negative. Resistance is in the 24,100-24,150 region. The Nifty 50 January Futures contract can fall to 23,900 during the day. A break below 23,900 can drag it down to 23,700.

The region between 24,150 and 24,200 is a strong short-term resistance. The contract has to breach 24,200 to gain bullish momentum and rise further.

Trade Strategy

Traders can go short now at 24,025. Accumulate shorts on a rise at 24,085. Keep the stop-loss at 24,130. Trail the stop-loss down to 23,990 as soon as the contract falls to 23,965. Move the stop-loss further down to 23,960 when the contract touches 23,940. Exit the shorts at 23,920.

Supports: 23,900, 23,700

Resistances: 24,100, 24,150