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Nifty 50 February futures (17,715)
The Indian benchmark indices are trading in the green. Both the Sensex and Nifty 50 are sustaining the sharp bounce-back seen from the Budget Day’s low. Both the indices are trading up by 0.63 per cent each. The Sensex is at 59,225 and Nifty at 17,685. Both the indices have key resistances ahead.
The Sensex has a resistance at 60,000 and Nifty at 17,750. It will be interesting to see if the indices manage to break above these resistances. The inability to break above these hurdles can drag the indices down in the coming days and keep them under pressure. A strong break above 60,000 can take the Sensex up to 61,000 and the Nifty can rise to 18,000-18,200 on a strong rise past 17,750. As such the price action in the coming sessions will need a close watch.
All major indices are in the green and are up over a per cent. Nikkei 225 (27,546), Hang Seng (23,802) and Kospi (2,663) are up in the range of 1 to 1.9 per cent. The Chinese markets are closed the whole of this week on account of a public holiday.
In the US, the Dow Jones Industrial Average (35,405, up 0.78 per cent) has been moving up consistently over the last three trading days. A rise past 35,500 will pave the way for a further rise to 36,000-37,000 in the coming days.
Futures: The Nifty 50 February futures (17,715) are trading up by 0.72 per cent. An important resistance is at 17,800. The contract has to breach 17,800 to move further up towards 18,000 and 18,200 going forward. Inability to break above 17,800 can drag the contract down to 17,600 and even 17,400 in the coming sessions. As such the price action around 17,800 will need close watch. Traders will have to consider taking long positions on a break above 17,800. Stop-loss can be placed at 17,730. Trail the stop-loss up to 17,835 as soon as the contract moves up to 17,890. Move the stop-loss further up to 17,920 as soon as the contract touches 17,960. Book profits at 17,990.
Trade Strategy: Go long only on a break above 17,800 with a stop-loss at 17,730 for the target of 17,920. Trail the stop-loss up to 17,835 as soon as the contract moves up to 17,890. Move the stop-loss further up to 17,920 as soon as the contract touches 17,960.
Supports: 17,600 and 17,400
Resistances: 17,800 and 18,000
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