Nifty 50 February futures (22,115)
The Nifty 50 has come down after making a high of 22,107 in initial trades. The index is currently trading flat at around 22,040.
Nifty Outlook
A crucial resistance is around 22,150. Nifty has to breach this hurdle in order to gain bullish momentum. Such a break can take the index up to 22,500-22,700 this week.
On the other hand, failure to breach 22,150 and a subsequent fall below 22,000 will bring the Nifty under pressure. In such a scenario, Nifty can fall back to 21,800 and even lower again.
So, for now 22,000-22,150 will be the trading range to look for. A breakout on either side of these two levels will decide the next move.
Global indices
Asian markets are mixed. The Kospi (2,675) and Shanghai Composite (2,891) are up 1 per cent and 0.9 per cent respectively. Nikkei 225 (38,384) and Hang Seng (16,176), on the other hand, are down 0.26 per cent and 1 per cent, respectively.
In the US, the Dow Jones Industrial Average (38,628) fell on Friday and has closed the week on a mixed note. The US markets are closed today on account of a public holiday.
Nifty 50 futures
The Nifty 50 February futures (22,115) is marginally up by 0.08 per cent. On the charts, there is room on the upside to test 22,250-22,275. This rise can happen if the contract manages to sustain above 22,100 and breaks above 21,150 subsequently.
Support is in the 22,050-22,000 region. A break below 22,000 will be bearish to see a fall to 21,800 in the coming sessions.
Trade Strategy
Although there is room for a rise from here, the price action on the chart does not give a very strong signal. Also, considering the risk-reward ratio, we suggest traders stay out of the market today. See how the index closes for the day, and then trades can be taken accordingly.
Supports: 22,100, 22,000
Resistances: 22,275, 22,500
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