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Sensex and Nifty 50 are trading strong. Both indices are up about 0.6 per cent each. Sensex is trading at 61,658 and Nifty at 18,126. The near-term outlook is bullish.
Nifty can now test 18,200. A strong break and a decisive close above 18,200 will strengthen the bullish momentum. Such a break will pave way for a sustained rally going forward. Nifty will come under pressure only if it declines below 18,000 and then there is a likelihood of a fall to 17,900-17,800. This, however, appears unlikely.
Global indices
The Asian major indices are in green. Nikkei 225 (27,689), Hang Seng (21,292), Shanghai Composite (3,305) and Kospi (2,472) are all up in the range of 0.8-2.3 per cent.
In the US, the Dow Jones Industrial Average (34,128.05) is stuck in the sideways range of33,500-34,500. The bias is bullish towards a break above 34,500 and a rise to 35,500 in the coming days.
Nifty 50 futures
The Nifty 50 February futures (18,130) is up 0.53 per cent. Intraday support is at 18,100. As long as the index trades above this support, the outlook will remain positive. The Nifty 50 futures contract can rise to 18,200-18,230 in the coming sessions. The chances for this rise will be negated only if the contract declines below 18,100. The contract may then fall to 18,000-17,980.
Trading strategy
Traders can go long now and accumulate at 18,110. Keep the stop-loss at 18,080. Trail the stop-loss up to 18,155 as soon as the contract moves up to 18,175. Move the stop-loss further up to 18,180 when the contract touches 18,205. Book profits at 18,220.
Supports: 18,100, 18,000
Resistances: 18,200, 18,230
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