Nifty 50 The stock opened today’s session with a gap lower at 25,094 points compared to 25,145 points at yesterday’s close. It fell further after the opening and is now hovering around 24,975 points, down 0.7%.
The advancer-decline ratio stands at 18:32, giving the index a bearish trend. Bajaj Finance, up 1.8%, is the top gainer while State Bank of India, down 1.6%, is the top loser.
In line with the benchmark, mid and small cap indices are in the red. Also, except Nifty Realty, which is up 0.1%, all other sectors have fallen so far today.
Nifty PSU Bank and Nifty Oil & Gas were the top losers with declines of 1.5 and 1.2 per cent respectively.
Among the major stock indices, the ASX 200 (8,020) is up 0.5%. But others such as the Nikkei 225 (36,500), the Hang Seng (17,440) and the KOSPI (2,555) are down 0.1 to 0.8%.
Nifty 50 Futures
The Nifty 50 September futures opened the session lower at 25,190 points against yesterday’s close of 25,237 points. They are now hovering around 25,040 points, down 0.8%.
The contract has now fallen below the support at 25,100. This is a bearish signal. Nifty futures are likely to extend the fall from here.
Notable support levels are at 25,000 and 24,820. Given the current momentum, the support at 25,000 could be easily taken out.
In case of a recovery of the contract, only a bounce above 25,100 would be bullish. But as things stand, this seems less likely. Resistance above 25,100 lies at 25,225.
Trading Strategy
Nifty futures are currently at 25,040. Add short positions if price rises to 25,100. Place a stop loss at 25,225. When the contract falls below 25,000, revise the stop loss to 25,150. Exit at 24,820.
Supported: 25,000 and 24,820
Resistance: 25,100 and 25,250
