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Nifty 50 January Futures (21,855)
The Indian stock market has begun the new year on a weak note. Nifty 50 is trading at 21,701 and is down 0.14 per cent. The near-term outlook is slightly mixed. Support is at 21,650. Resistances are at 21,750 and 21,800. The charts indicate that 21,650-21,800 will be the trading range for now. A breakout on either side of this range will determine the next move. We will have to wait for this range breakout to get clarity.
All major Asian markets are closed today. The US markets are also closed. As such the chances are high for the Indian markets to stay stable today and retain the 21,650-21,800 range.
The Nifty 50 January Futures contract (21,855) is down 0.15 per cent. Supports are at 21,800 and 21,750. Resistance is around 21,950. A breakout on either side of 21,750-21,950 will determine the next direction of move.
A break below 21,750 can drag the contract down to 21,700 and lower. On the other hand, a decisive break above 21,950 is needed to boost the bullish momentum. Such a break can take the Nifty 50 January Futures contract up to 22,100-22,200 in the near-term.
Trading strategy
Considering the chances for muted trading today, we suggest traders to stay out of the market. Wait for the Nifty 50 January Futures contract to break the 21,750-21,950 range on either side. Trades can be taken accordingly.
Supports: 21,800, 21,750
Resistances: 21,950, 22,100
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