Nifty 50 January Futures (21,666)

Nifty 50 continues to trade lower. As expected, the resistance in the 21,700-21,750 region had held very well on Tuesday. Now the fall to 21,500 is happening in line with our expectation. Nifty is currently trading at 21,588, down 0.36 per cent.

The price action around 21,500 will need a close watch today. If the Nifty manages to bounce from around 21,500, there is a possibility of revisiting the 21,600-21,700 levels. But a break below 21,500 will increase the selling pressure. Such a break can drag the Nifty down to 21,400 and even lower in the coming sessions.

Global indices

All Asian major indices are in red today. Kospi (2,617) is down by about 2 per cent and Hang Seng (16,583) is down 1.2 per cent. Shanghai Composite (2,957) and Nikkei 225 (33,464) are down about 0.2 per cent each.

The Dow Jones Industrial Average (37,715) is managing to hold higher. As long as it trades above 37,500, a rise to 38,000 and higher levels can be seen in the coming days. The index will come under pressure for a fall to 37,000 only on a break below 37,500.

Nifty 50 Futures

The Nifty 50 January Futures (21,666) is down 0.42 per cent. A very crucial support is in the 21,620-21,600 region.  A break below 21,600 will be very bearish to see 21,500 and even 21,350 on the downside in the coming sessions.

 On the other hand, if the Nifty 50 January Futures contract manages to bounce from around 21,600, a rise back to 21,750-21,800 can be seen again. Overall, the price action around 21,600 will need a very close watch today.

Trade Strategy

Since the direction of move will depend on what happens to the support at 21,600, we suggest traders to stay out of the market for now. Watch the price action around 21,600 closely and trades can be taken based on that accordingly.

Supports: 21,600, 21,500

Resistances: 21,750, 21,800

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