Nifty 50 January futures (21,342)
Nifty 50 is seeing some recovery after having fallen sharply on Tuesday. Nifty is trading at 21,373, up 0.63 per cent.
The broader picture is still weak. So, it is important to see if this bounce is sustaining or not. Intraday support is at 21,280. Immediate resistance is at 21,420. Above that 21,480 is the next strong support. Nifty can turn down again either from around 21,420 itself or from 21,480. That fall will drag the Nifty down to 21,300 and even lower going forward. From a big picture, as long as the Nifty trades below 21,500 now, the outlook is bearish to see a fall to 21,000-20,900 in the coming days.
- Also read: Bank Nifty prediction today – Jan 24, 2024: Index testing a barrier, wait before pulling the trigger
Global indices
In Asia, Hang Seng (15,476) is up 0.80 per cent. Nikkei 225 (36,125) is down over a per cent. Kospi (2,469) and Shanghai Composite (2,766) are down 0.37 and 0.15 per cent respectively.
The Dow Jones Industrial Average (37,905) fell 0.25 per cent on Tuesday. A strong follow-through rise above 38,000 is needed to take the index up to 38,300. Else it can fall back to 37,500 and even lower in the coming days.
Nifty 50 futures
The Nifty 50 January futures (21,342) are up 0.7 per cent. It made a high of 21,438 and has come down from there. Strong resistance is in the 21,450-21,470 region. An intraday rise to 21,450-21,470 cannot be ruled out. But a rise beyond 21,470 is unlikely.
We expect the Nifty 50 January futures contract to turn down from around 21,470 and fall back to 21,300 and 21,100 again.
Trading strategy
Traders can wait for a rise. Go short at 21,440 and 21,460. Keep a stop-loss at 21,510. Trail the stop-loss down to 21,410 when the price falls to 21,390. Move the stop-loss further lower to 21,370 when the contract touches 21,350. Exit the shorts at 21,320.
Supports: 21,300, 21,100
Resistances: 21,470, 21,630
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.