Nifty 50 January Futures (17,950)

Domestic benchmarks BSE Sensex and NSE Nifty are witnessing selling pressure. At the time of filing this report, Sensex was trading at 60,418, down 0.92 per cent, while and Nifty 50 was at 17,942, down 0.98 per cent. Nifty has declined below the key support level of 18,000. If it fails to bounce back above 18,000, a steep fall to 17,800-17,750 is possible from here.

Global indices

In the US, the Dow Jones Industrial Average (33,733.96) continues to move up. An important resistance is around 33,800 which if broken can take the index higher to 34,000 and 34,500 in the coming days.

Nifty 50 Futures

The Nifty 50 January Futures (17,950) is down. 17,975 can be an intraday resistance for now. Failure to rise past this hurdle can drag the contract down to 17,875 and 17,830 in the coming sessions.

A sustained rise above 17,975 is needed to ease the downside pressure and take the contract up to 18,030-18,050.

Trading Strategy

Traders can go short now. Keep the stop-loss at 17,985. Trail the stop-loss down to 17,920 as soon as the contract falls to 17,905. Move the stop-loss further down to 17,900 when the contract touches 17,890 on the downside. Book profits at 17,880.

Supports: 17,875, 17,830

Resistances: 17,975, 18,050