Nifty 50 January Futures (21,722)

Nifty 50 seems to be struggling to get a strong follow-through rise over the last few days. The index is now trading at 21,645, down 0.45 per cent.

Strong resistance is now in the 21,700-21,750 region. As long as the index trades below this resistance zone, the view will remain negative. So, a fall to 21,500 looks likely now.

Global indices

Asian markets are trading mixed. Kospi (2,661) is up 0.25 per cent. Hang Seng (16,800) and Shanghai composite (2,968) are down 1.4 and 0.2 per cent, respectively. Nikkei 225 is closed today.

In the US, the Dow Jones Industrial Average (37,689) was down marginally by 0.05 per cent. The index has to sustain above 37,500 in order to move further up towards 38,000 and higher. A fall below 37,500 can take the index down to 37,000 first. The price action in the next few days will need a close watch.

Nifty 50 Futures

The Nifty 50 January Futures (21,722) is down 0.76 per cent. Intraday outlook is negative. Resistance is in the 21,780-21,800 region. A fall to 21,600 can be seen in the coming sessions.

The Nifty 50 January Futures contract will have to rise above 21,800 to ease the downside pressure. Only in that case, the chances of rising back to 22,000 will come into the picture again.

Trade Strategy

Traders can go short now. Accumulate shorts on a rise at 21,760. Keep the stop-loss at 21,810. Trail the stop-loss down to 21,700 as soon as the contract falls to 21,670. Move the stop-loss further down to 21,660 when the contract touches 21,635 on the downside. Exit the long positions at 21,610.

Supports: 21,600, 21,500

Resistances: 21,800, 22,000

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