Nifty 50 February futures (22,505)

Nifty 50 is managing to sustain higher after witnessing a sharp rise on Friday. The index is currently trading at 22,404, up 0.12 per cent. It is important for it to get a strong follow-through rise from here to move further higher. Else there is a danger of witnessing a fall.

Nifty 50 outlook

Important intraday support is around 22,350. If the Nifty breaks below this support, a fall to 22,300 and 22,200 is possible. The region between 22,200 and 22,150 is a strong support zone. As such the downside can be limited to 22,150 in the coming sessions.

Nifty has to sustain above 22,350 and breach 22,450 decisively to move higher. In that case, a rise to 22,700-22,800 can come into the picture.

We will have to wait and watch.

Global Indices

In Asia, Hang Seng (16,578) is flat. Other major indices are in green. Kospi (2,675) is up 1.25 per cent. Nikkei 225 (40,101) and Shanghai Composite (3,033) are up 0.48 and 0.22 per cent respectively.

The Dow Jones Industrial Average (39,087) has risen back above 39,000 again. That keeps the outlook bullish. We can expect the Dow Jones to move up to 39,500-39,700 this week.

Nifty 50 futures

The Nifty 50 March futures (22,505) are trading flat. Resistance is around 22,550 which is holding very well for now. An intraday dip to 22,450-22,400 looks likely a possibility as long as the index trades below 22,550. But thereafter we can see the Nifty 50 March futures contract rising back towards 22,550-22,600 again. In case the contract breaks below 22,400, the downside can extend up to 22,300.

Trading strategy

Traders have to wait for dips to take long positions. Go long at 22,410. Keep a stop-loss at 22,360. Trail the stop-loss up to 22,440 as soon as the contract moves up to 22,470. Move the stop-loss further up to 22,475 when the contract touches 22,495 on the upside.  Exit the longs at 22,530.

Supports: 22,450, 22,400

Resistances: 22,550, 22600