Nifty 50 February Futures (7,170)
Taking a cue from the Asian stock markets and a surge in crude oil prices, the domestic bellwether indices opened on a positive note.
The Nifty futures index started the session with a gap-up at 7,186. It extended the bullish momentum and registered an intra-day high at 7,225. But the contract has failed to sustain above the 7,200 levels and gave away some of its gains. The contract found support at 7,137 levels and once again began to trend upwards.
Traders with a short-term perspective can buy the contract with a stop-loss at 7,150 levels. The contract could continue to trend northwards and test resistance at 7,200. A strong breach of this level could push it higher to 7,225 and then to 7,250. Nevertheless, an emphatic fall below the key support level of 7,120 can strengthen the bearish momentum and drag the contract down to 7,100. Next supports are placed at 7,075 and 7,050 levels.
Strategy: Make use of dips to buy the contract while maintaining a stop-loss at 7,150
Supports: 7,150 and 7,120
Resistances: 7,200 and 7,225