Comments
Nifty 50 March Futures (17,201)
The Indian benchmark indices continue to remain stuck inside their sideways range. Except for gap-up opening on Wednesday, both the Sensex and Nifty 50 are stuck between their 100- and 200-Day Moving Averages. The range of trade has been 17,000-17,400 on Nifty and 57,000-58,500 on Sensex. To get clear direction of the move, we will have to wait for a breakout on either side of these ranges. The bias is negative to see a downside breakout at the current range. As such, we expect the Nifty to break below 17,000 and fall to 16,750-16,500. Similarly, Sensex is expected to fall beow 57,000 and test 55,000 on the downside.
Asian indices are trading mixed. Nikkei 225 (28,118, up 0.03 per cent) and Kospi (2,732, up 0.12 per cent) are in green while the Shanghai Composite (3,225, down 0.77 per cent) and Hang Seng (21,436, down 2.34 per cent) are trading in the red.
The Dow Jones Industrial Average (34,707.94, up 1.02 per cent) has been oscillating around 34,500 for some time. A strong rise past 35,000 is needed to become bullish and see the 36,000 levels again. A break below 34,000 on the other hand would l be bearish and revisiting 33,000 levels on the downside is possible.
Futures: The Nifty 50 March (17,201) has been oscillating around 17,250 since yesterday and 17,000-17,400 is the broad range of trade. Within this, the intermediate support is at 17,180 and resistance at 17,340. A break below 17,180 can drag the contract down to 17,050-17,000, the lower end of the range. A strong rise past 17,400 is needed to bring back the bullish momentum and rise to 17,500-17,600 and higher levels.
On the other hand, a break below 17,000 will be bearish to see 16,800-16,600 on the downside.
Traders with high-risk appetite can go short on a break below 17,180. Keep the stop-loss at 17,220. Revise the stop-loss down to 17,150 as soon as the contract falls to 17,120. Move the stop-loss further down to 17,110 when the contract touches 17,080. Book profits at 17,020.
Trading Strategy: Go short on a break below 17,180 with a stop-loss at 17,220 and for the target of 17,020. Revise the stop-loss down to 17,150 as soon as the contract falls to 17,120. Move the stop-loss further down to 17,110 when the contract touches 17,080.
Supports: 17,180 and 17,000
Resistances: 17,340 and 17,400
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.