Nifty 50 May Futures (22,291)

Nifty 50 is trading lower. The index has been getting fresh sellers at higher levels. The index made a high of 22,307 and has come down from there. It is currently trading at 22,197, down 0.48 per cent. The advances/decline ratio is at 13:37. It indicates that the bias is negative and more fall is on the cards during the day.

Nifty 50 Outlook

The index has been struggling to get a sustained rise above 22,300. That leaves the bias negative. Support is at 22,180. A break below it can increase the selling pressure. Such a break can drag the index down to 22,000 in the coming sessions.

In case the Nifty manages to sustain above 22,180, it can oscillate in a range of 22,180 and 22,350.

Global Indices

In Asia, Kospi (2,718) is down about a per cent. Hang Seng (18,538) is up 1.2 per cent. Shanghai Composite (3,156) and Nikkei 225 (38,328) are up 0.9 and 0.3 per cent, respectively.

In the US, the Dow Jones Industrial Average (39,056, up 0.44 per cent) has been moving up well this week. The outlook is bullish. The Dow Jones has room to test 39,200-39,500 this week.

Nifty 50 Futures

The Nifty 50 May Futures Contract (22,291) is down 0.48 per cent. The outlook is bearish. Strong resistance is in the 22,300-22,350 region. The contract can fall to 22,000 in the next few sessions.

Trade Strategy

Traders can go short now at 22,291. Add more shorts on a rise at 22,330. Keep the stop-loss at 22,380 initially. Trail the stop-loss down to 22,260 as soon as the contract falls to 22,220. Move the stop-loss further down to 22,180 when the contract touches 22,140. Exit the shorts at 22,080.

This can be positional trade which can be carried forward until the target or stop-loss/revised stop-loss is hit.

Supports: 22,150, 22,000

Resistances: 22,350, 22,450

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