Nifty 50 is trading flat. The index touched a high of 22,182.70 and then has come down from there. It is currently trading at 22,107. The advances/decline ratio is at 26:24. This gives a mixed picture.
Nifty 50 outlook
Intraday resistance is in the 22,190-22,200 region. That seems to be holding well for now. Support is around 22,060. A break below it can drag the index down to 21,980 and 21,920 during the day.
Nifty has to breach 22,200 decisively to strengthen the bullish case. Only then a rise to 22,300-22,400 will come into the picture.
Global indices
The Asian markets are trading mixed. Nikkei 225 (38,233) is up 0.14 per cent and Kospi (2,726) is flat. Hang Seng (19,089) and Shanghai Composite (3,144) are down 0.12 per cent each.
The Dow Jones Industrial Average (39,431.51) was down 0.2 per cent yesterday. Failure to rise back above 39,500 can take it down to 39,000 first. Thereafter a fresh rise can happen targeting 39,900-40,000.
Nifty 50 Futures
Nifty 50 May Futures (22,178) is down 0.11 per cent. The contract has come down from the intraday high of 22,260. Support is at 22,160. A break below it can drag the contract down to 22,060 during the day. The price action thereafter will need a close watch to see if the contract is bouncing back or not.
A bounce from around 22,060 will increase the chances of revisiting 22,200 levels. On the other hand, a break below 22,060 will be bearish. In that case, the contract can fall to 21,900 in the coming sessions. We will have to wait and watch.
Trade Strategy
Go short only on a break below 22,160. Keep a stop-loss at 22,190. Trail the stop-loss down to 22,140 as soon as the contract falls to 22,120. Move the stop-loss further down to 22,125 when the contract touches 22,090. Exit the shorts at 22,080.
Supports: 22,160, 22,060
Resistances: 22,260, 22,400