Nifty 50 February Futures (21,986)

Nifty 50 is under pressure. The index has come down sharply after making an intraday high of 22,094 in the initial trades. It is currently trading at 21,915, down 0.65 per cent.

Nifty 50 Outlook

The view is bearish. The sharp fall below 22,000 is a negative. Nifty 50 can fall to 21,800 now. A break below 21,800 can drag the index further lower to 21,700.

The region between 22,000 and 22,100 is a strong resistance that can cap the upside for now. Nifty has to breach 22,100 decisively in order to turn the outlook positive. But that looks unlikely at the momentum.

Global indices

In Asia, the major indices are in green. Nikkei 225 (38,828) touched a record high of 39,029 and has come-off slightly from there. The index is up 1.58 per cent now. Kospi (2,661), Hang Seng (16,528) and Shanghai Composite (2,965) are all up in the range of 0.15-0.50 per cent.

The Dow Jones Industrial Average (38,612) remains stable within its broad 38,000-39,000 range. Within this, the chances are looking high for the Dow Jones to move up towards 39,000 – the upper end of the range in the near-term.

Nifty 50 Futures Outlook

The Nifty 50 February Futures (21,986) is down 0.37 per cent. Intraday resistance is in the 22,050-22,100 region. The outlook is bearish. The Nifty 50 February Futures contract can fall to 21,850-21,800 in the coming sessions.

Trade Strategy

Traders can go short now at 21,986. Accumulate more shorts on a rise at 22,020. Keep a stop-loss at 22,080. Trail the stop-loss down to 21,950 as soon as the contract falls to 21,920. Move the stop-loss further down to 21,880 when the contract touches 21,850 on the downside. Exit the shorts at 21,820.

Supports: 21,850, 21,800

Resistances: 22,050, 22,100

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