Nifty 50 February futures (22,255)

Nifty 50 remains bullish. The index is continuing to move up. It is currently trading at 22,242.50, up 0.22 per cent.

Nifty 50 outlook

The rise above the 22,150-22,180 resistance zone is a positive. Support is now in the 22,200,22,180 region. The outlook is bullish. Nifty 50 can rise to 22,500 in the coming sessions.

The index will come under pressure only if it declines below 22,150. Only in that case, a fall to 22,000 will come into the picture. From a short-term perspective, Nifty has to fall below 22,000 to turn the outlook bearish. That looks less likely at the moment.

Global indices

Asian markets are trading mixed. Hang Seng (16,735) has surged 3 per cent and Shanghai Composite (2,973) is up 1.7 per cent. On the other hand, Nikkei 225 (38,214) and Kospi (2,678) are down about 0.4 per cent each.

The Dow Jones Industrial Average (38,564) in the US has come down slightly on Tuesday. The near-term outlook is mixed. The index can oscillate between 38,000 and 39,000 for some time.

Nifty 50 futures outlook

The Nifty 50 February futures (22,255) are up 0.2 per cent. The contract has a key resistance at 22,270. Support is in the 22,220-22,200 region. As long as the contract sustains above this support zone, the outlook will remain positive. As such the chances are high of the Nifty 50 futures contract to breach 22,270 and rise to 22,400 and higher.

The intraday outlook will turn negative only if the contract declines below 22,200. In that case, a fall to 22,100 can be seen.

Trading strategy

Traders can go long on a break above 22,270. Keep a stop-loss at 22,240. Trail the stop-loss up to 22,295 as soon as the contract moves up to 22,315. Move the stop-loss further up to 22,345 when the contract touches 22,360. Exit the long positions at 22,380

Supports: 22,200, 22,100

Resistances: 22,270, 22,400

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