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Nifty 50 March Futures (17,270)
Sensex and Nifty 50 are trading slightly lower. Both the indices opened with a gap-up but failed to sustain higher.
Nifty has come-off from the high of 17,352 and Sensex from 58,118. Nifty is trading at 17,266, down 0.12 per cent and Sensex is at 57,787, down 0.13 per cent.
Crucial resistances are at 17,380 on the Nifty and 58.268 on Sensex. The indices have to breach these hurdles to gain fresh bullish momentum and extend the rally for the third consecutive week.
Key supports are at 17,000 for Nifty and 56,900 for Sensex. A break below these supports will increase the downside pressure and drag the indices sharply lower. That will also reduce the chances of seeing a further rise.
Overall, Sensex and Nifty can oscillate in a sideways range and a breakout on either side of their range will then determine the next direction of move.
In Asia, barring the Nikkei 225 (26,827, up 0.65 per cent) all other major indices are trading in red. Shanghai Composite (3,228), Hang Seng (21,173) and Kospi (2,689) are down in the range of 0.65-1.1 per cent.
Futures
The Nifty 50 March (17,270) is down 0.3 per cent. Crucial resistance for the contract is at 17,400. A strong rise past 17,400 is needed to bring fresh bullish momentum.
Such a break can take the contract up to 17,500-17,600 and even higher in the coming days. On the downside, 17,000 is an important support. A break below it will be bearish to see 16,800 and lower levels going forward.
For now, we can expect a range 17,000-17,400 for some time. A breakout on either side of this range will then decide whether the Nifty 50 March futures contract can go up to 17,500-17,600 or will fall to 16,800 and lower.
Traders can stay out of the market for now. Trades can be taken accordingly based on the direction of the range breakout.
Trading strategy
Stay out of the market for now. Wait for a breakout of the 17,000-17,400 range and take trades accordingly.
Supports: 17,000 and 16,800
Resistances: 17,400 and 17,500
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