Nifty 50 February Futures (22,407)

Nifty 50 is trading lower. After hovering around 22,400 all-through the day on Monday, the index has started to come down. This indicates that there could be lack of strong follow-through buying in the market. Nifty is currently trading at 22,330, down 0.34 per cent.

Nifty 50 outlook

The fall below 22,350 is a negative. If this sustains, Nifty 50 can see a sharp fall to 22,250-22,200 during the day. The chances of the downside extending even up to 22,150 cannot be ruled out.

The price action thereafter will need a close watch as the 22,200-22,150 region is an important support zone. A bounce from this support zone can take the Nifty 50 up to 22,300 and higher again.

Global indices

Asian markets are trading mixed. Nikkei 225 (40,197) and Shanghai Composite (3,047) are up about 0.2 per cent each. Kospi (2,658) and Hang Seng (16,272), on the other hand are down 0.6 and 1.95 per cent, respectively.

The Dow Jones Industrial Average (38,989) in the US has dipped below 39,000. Failure to rise back from here can drag the index down to 38,800-38,700 and even 38,500 in the coming days. The price action in the next few days will be very important to watch.

Nifty 50 Futures

The Nifty 50 March Futures (22,407) is down 0.4 per cent. The intraday picture looks weak. Resistance is around 22,470. The Nifty 50 March Futures contract can fall to 22,300 during the days.

A strong rise past 22,470 is needed to bring back the bullishness.

Trade strategy

Traders can go short now. Accumulate on a rise at 22,440. Trail the stop-loss down to 22,380 as soon as the contract falls to 22,365. Move the stop-loss further down to 22,345 when the contract touches 22,330. Exit the shorts at 22,320.

Supports: 22,300, 22,200

Resistances: 22,470, 22,550

Related Topics
comment COMMENT NOW