Nifty 50 March Futures (23,695)
The upmove that was in place for more than a week in the Nifty 50 seems to have taken a pause. The resistance at 23,850 that we had mentioned in this column yesterday is holding well for now. Nifty touched a high of 23,869.60 on Tuesday and has come off from there. It is currently trading at 23,685, marginally up by 0.06 per cent. The advances/declines ratio is at 24:26. This leaves the bias slightly negative.
Nifty 50 outlook
Nifty has an important support at 23,600. Resistance is at 23,850, which is holding well for now. Nifty will come under pressure if it breaks below 23,600. Such a break can trigger a fall to 23,400 and even 23,250 in the coming sessions.
Nifty has to get a sustained break above 23,850 to strengthen the momentum. Only then a rise to 24,000-24,100 will come into the picture.
Nifty 50 Futures
The Nifty 50 March Futures (23,695) is marginally down by 0.03 per cent. Key intraday support is at 23,620. A break below it can drag the Nifty 50 March Futures contract down to 23,400 and 23,250.
The contract has to get a strong break and a follow-through rise above 23,870 to clear the way for a rise to 24,200 and higher.
Trade Strategy
Traders can stay out of the market for now. However, high-risk appetite traders can go short on a break below 23,620. Keep the stop-loss at 23,680. Trail the stop-loss down to 23,580 as soon as the contract falls to 23,550. Move the stop-loss further down to 23,560 when the contract touches 23,530. Exit the short positions at 23,480.
Supports: 23,620, 23,400
Resistances: 23,870, 24,000