Nifty 50 June Futures (22,115)
Nifty 50 is trying to recover after getting beaten down badly on Tuesday. It looks like the index is struggling to get a strong follow-through rise. Nifty has come down after making an intraday high of 22,131.60 in the opening trades. It is currently trading at 21,982, up 0.45 per cent. The advances/declines ratio is at 32:18. This is positive as of now. But, if this turns around then that will drag the Nifty further lower during the day.
Nifty 50 outlook
Nifty has resistance in the 22,250-22,300 region. It has to break above this resistance to become bullish again. Only then a rise to 22,500-22,600 will come back into picture again.
But as long as the Nifty stays below 22,300, the bias will remain negative. Support is in the 21,800-21,750 region. A break below it can drag the Nifty down to 21,400-21,200 in the coming days.
Nifty 50 Futures
The Nifty 50 June Futures (22,115) is up 0.95 per cent. The immediate outlook is unclear. Support is around 21,800 and resistance at 22,300. So broadly 21,800 to 22,300 can be the trading range for some time. A breakout on either side of this range will determine the next move.
A break above 22,300 will be bullish to see 22,450 and 22,600. On the other hand, a break below 21,800 will be bearish to see 21,300 on the downside in the near-term.
Trade Strategy
Traders can wait for a breakout to take trades accordingly. We expect the sentiment to remain negative. So, go short on a break below 21,800. Keep a stop-loss at 21,840. Trail the stop-loss down to 21,770 when the contract falls to 21,755. Move the stop-loss further down to 21,745 when the contract touches 21,730. Exit the shorts at 21,710.
Supports: 21,800, 21,700
Resistances: 22,300, 22,450