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Nifty 50 opened the day on a positive note with a gap-up and has been hovering around the psychological 22,000-mark. It is currently trading at 22,010, up 0.35 per cent.
Nifty made an intraday high of 22,053 and has since declined. So the price action during the day will need a close watch. Absence of a strong rise above 22,000 can drag the index lower.
Intraday support is at 21,950. Nifty must sustain above this support to move up to 22,100-22,150 in the coming sessions. A break below 21,950 can drag the index down to 21,850 and 21,800.
Global indices
Asian markets are mixed. Nikkei 225 (36,027) is down 0.37 per cent and Hang Seng (16,124) is flat. Kospi (2,600) and Shanghai Composite (2,814) are up 0.9 per cent each.
The Dow Jones Industrial Average (38,521) had rebounded well on Tuesday, up 0.37 per cent. That keeps intact the bullish anticipation of a rise to 39,300-39,400 in the short term. Important support is at 38,100. The near-term outlook will turn negative only if the index declines below this support.
Nifty 50 futures
The Nifty 50 February Futures (22,068) is up 0.4 per cent. Outlook is bullish. Support is in the 22,030-22,000 region. The chances appear high for the Nifty 50 February futures contract to reach 22,200 and beyond in the coming sessions.
The region around 21,900 is a strong support. The outlook will turn negative only if the contract declines below 21,900.
Trade strategy
Traders can go long now. Accumulate on dips at 22,020. Keep the stop-loss at 21,980. Trail the stop-loss up to 22,095 as soon as the contract moves up to 22,120. Move the stop-loss further up to 22,135 when the contract touches 22,160. Exit the long positions at 22,180.
Supports: 22,000, 21,900
Resistances: 22,200, 22,300
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