Nifty prediction today — February 29, 2024: Bearish. Go short now, and on a rise

Nifty 50 has failed to recover in early trade today, falling sharply from a high of 22,022. It is currently trading at 21,875, down 0.35 per cent.

Nifty 50 outlook

Strong intraday resistance is near 22,050. The crucial support zone is 21,850-21,800.

A strong break below 21,800 will be bearish and can take the Nifty down to 21,500 and below in the coming days.

Global indices

Asian markets are mixed. Nikkei 225 (39,058) and Kospi (2,644) are down 0.38 and 0.27 per cent, respectively. Hang Seng (16,561) and Shanghai Composite (2,979) are down 0.15 and 0.173 per cent, respectively.

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Stocks that will see action today: February 29, 2024

The Dow Jones Industrial Average (38,949) has recovered well from its low of 38,742. As long as the index stays below 39,000 the bias will remain negative. The Dow Jones can fall to 38,500 and 38,000 in the coming days. A strong rise above 39,000 will be needed to avert this fall.

Nifty 50 Futures

The Nifty 50 February Futures (21,888) is down 0.17 per cent. Resistance is in the 21,900-22,000 region. The contract can fall to 21,800. A break below 21,800 can drag it down to 21,600.

Trade strategy

Traders can go short at 21,888. Accumulate on a rise at 21,940. Keep a stop-loss at 21,970. Trail the stop-loss down to 21,860 as soon as the contract falls to 21,840. Move the stop-loss further down to 21,830 when the contract touches 21,815. Exit the long positions at 21,800.

Supports: 21,800, 21,600

Resistance: 21,900, 22,000

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