Comments
Nifty 50 January Futures (21,807)
Nifty 50 is continuing to move higher. The index is getting a good follow-through buying. However, the pace of rise seems to be slow. Nifty is currently trading at 21,735, up 0.35 per cent.
The rise above 21,700 has reduced the danger of falling-back again. The outlook is positive. Nifty can rise to 21,800-21,850 again. The price action thereafter will need a close watch as 21,850 is a strong resistance. A decisive break above 21,850 will be needed to take the Nifty up towards 22,000-22,200 next week.
Global indices
The Asian markets are slightly mixed. Nikkei 225 (33,521) is up 0.7 per cent. Other major indices such as the Shanghai Composite (2,950), Hang Seng (16,622) and Kospi (2,580) are down in the range of 0.13-0.30 per cent.
In the US, the Dow Jones Industrial Average (37,440) has come down sharply from its intraday high giving back almost all the gains on Thursday. The index has to get a strong and sustained rise above 37,500 to avoid the fall to 37,000. The price action today is very important. The US jobs data release today could influence the market movement.
Nifty 50 Futures
The Nifty 50 January Futures (21,807) is up 0.1 per cent. Support is in the 21,750-21,720 region. Immediate resistance is at 21,830. A break above it can take the Nifty 50 January Futures contract up to 21,950 and 22,000.
On the other hand, the contract will come under pressure again if it declines below 21,700. In that case, a fall to 21,600 and lower levels can be seen. But such a fall looks less likely at the moment.
Trading Strategy
Traders can go long on a break above 21,830. Keep the stop-loss at 21,810. Trail the stop-loss up to 21,860 as soon as the contract moves up to 21,880. Move the stop-loss further up to 21,890 when the contract touches 21,910. Exit the long positions at 21,930.
Supports: 21,720, 21,600
Resistances: 21,830, 21,950
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.