Nifty 50 January Futures (18,176)
Sensex and Nifty 50 are stuck inside a narrow range over the last few days. Nifty is stuck between 18,000 and 18,200 and Sensex between 60,500 and 61,200. Nifty is now trading at 18,148, up 0.17 per cent and Sensex at 61,066 is up 0.2 per cent. It looks like the market is in need of a strong trigger to move either way.
Nifty has to break above 18,200 to gain bullish momentum and rise to 18,300 initially and then higher eventually. On the other hand, the index will come under pressure if it declines below 18,000. Such a break can drag it to 17,900-17,800. On the charts, the bias is bullish to see a break above 18,200.
Global indices
In the US, the Dow Jones Industrial Average (33,629.56) had moved up for the second consecutive day. It has a crucial resistance in the 33,800-34,000 region which can be tested in the near term. A strong rise past 34,000 is needed to gain bullish momentum.
Nifty 50 Futures
The Nifty 50 January Futures (18,176) is up 0.15 per cent. The contract broke above 18,200 but failed to sustain. Intraday resistance is at 18,225. The Nifty 50 January Futures contract will have to breach 18,225 to move further up towards 18,300. Failure to rise past 18,200 can take it down to 18,100 during the day.
Trading strategy
Go long only on a break above 18,225. Keep the stop-loss at 18,190. Trail the stop-loss up to 18,245 as soon as the contract moves up to 18,260. Move the stop-loss further up to 18,265 when the contract touches 18,285. Book profits at 18,300.
Supports: 18,100,18,000
Resistances: 18,225, 18,300