Technical Analysis

Nifty Call: Nifty 50 January Futures (18,060)

Gurumurthy K | Updated on: Jan 11, 2022
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Traders may go short at 18,160 and 18,190 keeping the stop-loss at 18,235

BL Research Bureau

The Indian benchmark indices continue to move higher. The Sensex and Nifty 50 are trading in the green. Sensex is at 60,527 and is up 0.22 per cent. Nifty is up 0.17 per cent and is currently trading at 18,033. There is room for further rise from current levels. However, crucial resistances are coming up which needs to be watched. Sensex has resistance at 61,000 and Nifty has it at 18,125. Whether the indices manage to break these resistances or not will be key in deciding the next leg of move.

In Asia, except the Hang Seng (23,828, up 0.34 per cent) all other major indices are trading in red. Nikkei 225 (28,231) is down 0.87 per cent and Shanghai Composite (3,587) is down 0.16 per cent.

In the US, the Dow Jones Industrial Average (36,068.87, down 0.45 per cent) fell further yesterday. The bearish view is intact to see 35,500-35,000 in the coming days. A steeper fall to 34,000 is also possible in the coming weeks.

Futures : The Nifty 50 January (18,060) is marginally up by 0.05 per cent. Immediate support is at 17,980. While the contract sustains above this support, a further rise to 18,180-18,200 can be seen in the coming sessions. The level of 18,180-18,200 is a strong resistance which can hold on its first test at least and trigger a pull-back to 17,950 and even lower in the coming days.

Traders can wait for a rise and go short at 18,160 and 18,190. Keep the stop-loss at 18,235. Revise the stop-loss lower to 18,140 as soon as the contract moves down to 18,080. Move the stop-loss further lower to 18,060 as soon as the contract falls to 18.010. Book profits at 17,980.

The bearish view will get negated if the contract breaks above 18,200 decisively. Such a break will then pave way for a further rise to 18,400.

Strategy: Go short at 18,160 and 18,190. Keep the stop-loss at 18,235 for the target of 17,980. Trail the stop-loss down to 18,140 as soon as the contract moves down to 18,080. Move the stop-loss further lower to 18,060 as soon as the contract falls to 18.010.

Published on January 11, 2022

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