Nifty 50 January Futures (18,014)
Sensex and Nifty 50 have come-off after opening higher. Both indices are trading flat. Sensex is at 60,371 and Nifty at 17,968. The near-term outlook remains unclear. Nifty has to see a sustained rise above 18,000 to move up towards 18,150 and 18,250 in the near-term. Otherwise, it can fall back and continue to oscillate between 17,800 and 18,000. Overall, it is a wait-and-watch situation.
Also read: Markets to open positive, indicates SGX Nifty
Global indices
In Asia, barring Nikkei 225 (25,808, down 1.2 per cent) other major indices are in green. Shanghai Composite (3,241) has risen sharply and is up 1.44 per cent. Hang Seng (21,896) and Kospi (2,407) are up 0.7 and 0.8 per cent respectively.
In the US, the Dow Jones Industrial Average (34,302) continues to move up. The outlook is bullish to see 34,800-35,000 and even 35,400 in the coming weeks.
Nifty 50 Futures
The Nifty 50 January Futures (18,014) is down marginally by 0.05 per cent. It has come off from the high of 18,097 and is hovering around 18,000. The immediate outlook is unclear. The contract can go either way.
Also read: Markets climb in early trade on firm global equities
Intraday support is at 17,980. A break below it can drag the contract down to 17,930-17,920. On the other hand, a strong rise past 18,100 is needed to ease the downside pressure and take the Nifty 50 January Futures contract up to 18,180-18,200 and higher levels.
Trading strategy
Considering the risk-reward ratio and lack of clarity on the direction of move, we suggest traders stay out of the market.
Supports: 17,980, 17,920
Resistance: 18,100, 18,200