Nifty 50 January Futures (18,160)

Sensex and Nifty 50 are trading relatively stable. Although there was some pull-back seen on Thursday, the benchmark indices are managing to stay afloat with 0.1 per cent rise each. Sensex is trading at 60,939 and Nifty 18,129.

Nifty is holding well above the psychological 18,000-mark. This keeps the bias positive for the Nifty to break the resistance around 18,250-18,300. That in turn will open doors for a fresh rise towards 18,400-18,500. However, the breakout above 18,300 and the rise to 18,400-18,500 may or may not happen immediately. Until then the Nifty can remain in a broad range of 18,000-18,300.

Global indices

Asian markets are in green. Nikkei 225 (26,490), Shanghai Composite (3,257), Hang Seng (21,868) and Kospi (2,388) are all up in the range of 0.3-1 per cent.

In the US, the Dow Jones Industrial Average (33,044, down 0.76 per cent) continues to fall. It has room to test 32,800-32,500. Thereafter the overall uptrend can resume.

Nifty 50 Futures

The Nifty 50 January Futures (18,160) contract is up 0.3 per cent. Immediate resistance is at 18,175. A break above it can take the contract up to 18,225 today. Immediate support is at 18,150. If the contract manages to sustain above this, the above-mentioned rise can happen today.

But, if the Nifty 50 Futures contract declines below 18,150, it can fall to 18,100-18,080 during the day.

Considering the strong bounce seen from the day’s low around 18,085, the chances are high for the Nifty 50 January Futures contract up to 18,225 today.

Trading strategy

Traders with high-risk appetite can go long at current levels. Keep the stop-loss at 18,135. Trail the stop-loss up to 18,175 as soon as the contract moves up to 18,190. Move the stop-loss further up to 18,195 when the contract touches 18,210. Exit the longs at 18,220.

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