Nifty 50 February Futures (17,920)

Domestic benchmarks are trading flat after recovering from lows in early trades. BSE Sensex is at 60,692, while NSE Nifty is trading at 17,869.

The strong bounce from the low of 17,780 on the Nifty is positive. This indicates the index is witnessing fresh buying around 17,800 after the breakout seen on Wednesday. As long as the Nifty sustains above 17,800, the bias will remain bullish and it will also keep the chances of hitting 18,000 and higher levels in the coming days alive.

Global indices

Asian markets are mixed. Nikkei 225 (27,533) and Kospi (2,480) are down, while the Hang Seng (21,356) and Shanghai Composite (3,252) are in green. In the US, the Dow Jones Industrial Average (33,949) has been oscillating in a sideways range. The bias is bullish for the index to break the range and rise to 35,000 in the coming days.

Nifty 50 Futures

The Nifty 50 February Futures (17,920) is marginally up by 0.06 per cent. The contract has risen back very well from near 17,820—a key resistance-turned-support level. This leaves the bias bullish. We can expect the contract to rise to 18,000-18,050 in the coming sessions. That will also keep the doors open for the contract to target 18,200 in the near-term.

The Nifty 50 February Futures will come under pressure only if it breaks below 17,820. In that case, a fall to 17,700 can be seen.

Trading Strategy

We prefer for a positional trade at the moment, rather than intraday. Go long now and accumulate on dips at 17,860. Keep the stop-loss at 17,810. Trail the stop-loss up to 17,945 as soon as the contract moves up to 17,970. Move the stop-loss further up to 17,990 when the contract touches 18,010. Book profits at 18,040

Supports: 17,820, 17,700

Resistances: 18,050, 18,120