Technical Analysis

Nifty call: Nifty 50 March Futures (17,485)

Gurumurthy K |BL Research Bureau | Updated on: Mar 30, 2022
Nifty 50 is trading higher, taking cue from rising global equities spurred by the Russia-Ukraine peace talks

Nifty 50 is trading higher, taking cue from rising global equities spurred by the Russia-Ukraine peace talks | Photo Credit: PAUL NORONHA

Given the bullish outlook, the contract can test 17,600-17,650 in the near term

Global equities are trading higher. The initial outcomes of the Russia-Ukraine peace talks have provided some relief for the equities. Russia has said it will cut back its military activity around Ukraine’s capital to aid the peace talks, which spurred the European markets to close higher yesterday. The Dow Jones Industrial Average in the US also closed in green over this news.

In Asia, barring the Nikkei 225 (27,774, down 1.69 per cent), other major indices are trading in green. Shanghai Composite (3,245) and Hang Seng (22,180) are up sharply by over a per cent each while Kospi (2,742) is up marginally by 0.03 per cent.

Taking cue from the rise in the global equities, India’s Sensex and Nifty 50 are also trading higher. Both indices opened the day with a wide gap-up, thereby breaking their current range on the upside. Nifty has risen above 17,400 and is trading at 17,491, up 0.96 per cent. Sensex is trading just above 58,500 and is now at 58,568, up 1.08 per cent. A strong follow-through rise from here will be bullish. In that case, Sensex can target 60,500-61,000 and Nifty can test 18,000-18,200 in the coming weeks.

Futures: The Nifty 50 March (17,485) has broken the 17,000-17,400 range on the upside. The outlook has turned bullish. The contract can test 17,600-17,650 initially in the near term. A break above 17,650 will increase the bullish momentum and take the contract further up to 17,800.

Traders can go long now and accumulate on dips at 17,440. Stop-loss can be placed at 17,360. Trail the stop-loss up to 17,510 as soon as the contract moves up to 17,570. Move the stop-loss further up to 17,580 as soon as the contract touches 17,610. Book profits at 17,630.

The Nifty 50 futures contract will come under pressure only if it falls below 17,400 again. But considering the sideways consolidation that was in place for more than a week, a fall below 17,400 might not be easy now.

Strategy: Go long now and accumulate on dips at 17,440. Keep the stop-loss at 17,360 for the target of 17,630. Trail the stop-loss up to 17,510 as soon as the contract moves up to 17,570. Move the stop-loss further up to 17,580 as soon as the contract touches 17,610

Supports: 17,400 and 17,270

Resistances: 17,650 and 17,800

Published on March 30, 2022
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