The Indian benchmark indices witnessed a sharp recovery on Tuesday following the news that Russia has called back some of its troops to its base. This had given some relief for the global equity markets which were under pressure expecting a possible invasion of Ukraine by Russia.

However, it will have to be seen if the indices can get a strong follow-through rise from here. Both the Sensex and Nifty 50 are trading flat now. Sensex is down marginally by -0.06 per cent and is trading at 58,100. Nifty is up slightly by 0.03 per cent and is currently at 17,357.

Resistance for the Sensex will be at 59,000. Nifty has resistance at 17,450-17,500. We will have to wait and watch whether the indices break above these resistances or not. A break above 59,000 can take the Sensex up to 60,000-61,000. Nifty on the other hand can rise to 17,800 on a break above 17,500.

On the global front, the Dow Jones Industrial Average (34,998, up 1.22 per cent) has risen back well thereby reducing the danger of breaking below 34,000. A strong rise past 35,000 can take it up to 35,500 in the near-term.

In Asia, all major indices are in green today. Nikkei 225 (27,431) is up 2.11 per cent. Shanghai Composite (3,470.13), Hang Seng (24,697) and Kospi (2,726) are up in the range 0.7-1.9 per cent.

Futures

The Nifty 50 February Futures (17,275) is down about 0.16 per cent. It has support at 17,250 which can be tested during the day. The contract will have to sustain above 17,250 and rise back above 17,300 to keep the momentum going. In that case a rise to 17,500-17,600 is possible in the near-term. On the other hand if the Nifty 50 futures contract breaks below 17,250, it can come under pressure to see a steeper fall to 17,000. Overall the price action around 17,250 will need a close watch.

At the moment, we prefer to stay out of the market and watch it closes today to get a clear cue going forward.

Trade Strategy: Stay out of the market

Supports: 17,250 and 17,000

Resistances: 17,450 and 17,600

comment COMMENT NOW