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Nifty 50 May Futures (22,545)
Nifty 50 has begun the week on a weak note. The sharp fall seen on Friday last week is continuing to weigh on the index. It is currently trading at 22,456, down 0.08 per cent. The advances/declines ratio is at 19:31. This gives a bearish bias.
Nifty 50 outlook
Intraday resistance is around 22,600. Nifty can fall to 22,300 during the day. The chances of the fall extending even up to 22,100-22,000 this week cannot be ruled out.
Nifty has to rise past 22,600 first and then breach 22,800 to become bullish again. Only in that case, bullish view of seeing a rise to 23,000 will come into the picture again.
Nifty 50 Futures
The Nifty 50 May Futures (22,545) is down 0.15 per cent. The contract has come down after testing the resistance at 22,700.
The outlook is bearish. Intermediate support is at 22,480 which is likely to be broken. Such a break can drag the Nifty 50 May Futures contract down to 22,320-22,300 in the coming sessions.
The contract has to get a sustained rise above 22,700 to bring back the earlier bullishness and rise to 22,900 and higher.
Trade Strategy
Traders can wait for a rise. Positional trades can be taken at this point of time.
Go short 22,590 and 22,640. Keep the stop-loss at 22,715. Trail the stop-loss down to 22,540 as soon as the contract falls to 22,490. Move the stop-loss further down to 22,460 when the contract touches 22,410. Exit the shorts at 22,380.
Supports: 22,480, 22,300
Resistances: 22,700, 22,900
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