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Nifty 50 has come down sharply. The index is under pressure on the back of the geopolitical tensions between India and Pakistan. Nifty is currently trading at 24,025, down one per cent. The advances/declines ratio is at 5:45. This clearly indicates that the sentiment is negative.
Nifty 50 Outlook
Nifty has strong support in the 23,900-23,850 region. Though this support zone can be tested in the coming sessions, a break below 23,850 is unlikely. We expect the Nifty to sustain above 23,850 and rise back towards 24,400 again in the coming days.
In case the index declines below 23,850, it be bearish to see 23,400 on the downside. But such a fall looks less likely.
Nifty 50 Futures
The Nifty 50 May Futures (24,121) is down about 0.6 per cent. The contract touched a low of 23,984 and has bounced back from there. A strong support is around 23,900 which can be tested in the coming sessions. However, we expect the downside to be limited to this support level of 23,900. The chances are high for the Nifty 50 May Futures contract to sustain above 23,900 and rise back towards 24,400 and higher next week.
In case the contract declines below 23,900, an extended fall to 23,600 can be seen.
Trade Strategy
Traders can stay out of the market now. But a further fall from here is going to give us a very good buying opportunity. So, traders who wish to carry their trades for next week can go long on dips at 23,960 and 23,920. Keep the stop-loss at 23,860. Trail the stop-loss up to 23,990 when the contract goes up to 24,050. Move the stop-loss further up to 24,060 and 24,130 when the contract touches 24,090 and 24,180 respectively. Exit the long positions at 24,260.
Supports: 23,900, 23,600
Resistances: 24,300, 24,400
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Published on May 9, 2025
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