Nifty 50 is trading flat. The index is currently at 22,120. The advance-decline ratio is at 22:28. The bias is currently negative.
Nifty 50 outlook
The support at 22,080 is holding well for now. However, resistance is in the 22,130-22,150 region. Nifty has to breach 22,150 to gain bullish momentum and rise to 22,200-22,300 and beyond. As long as it trades below 22,150, the bias is negative, making it highly likely to break 22,080 and fall to 22,000 in the coming sessions.
Global indices
Most major Asian indices are in red. Nikkei 225 (39,173), Kospi (2,635), Hang Seng (16,574) are all down in the range of 0.15-0.46 per cent. Shanghai Composite (2,992) is up 0.5 per cent.
The Dow Jones Industrial Average (39,069) has fallen on Monday. The price action in the coming days will need a close watch. A further fall below 39,000 could indicate that a top is in place. That can drag the Dow Jones down to 38,800 and even 38,500 this week. It will mark the beginning of a strong correction in the Dow Jones.
Nifty 50 futures outlook
The Nifty 50 February futures (22,120) contract has resistance in the 22,170-22,200 region. Support is at 22,100. Though an intraday rise to 22,200 cannot be ruled out, the contract has to breach 22,200 to become bullish convincingly. Only then does a rise to 22,300 and higher come into the picture.
As long as the contract trades below 22,200, the bias is negative to break 22,100. Such a break can drag the Nifty 50 February futures contract down to 22,000 and lower.
Trade strategy
Traders can go short on a break below 22,100. Keep a stop-loss at 22,130. Trail the stop-loss down to 22,070 as soon as the contract falls to 22,045. Move the stop-loss further down to 22,040 when the contract touches 22,030. Exit the shorts at 22,020.
Supports: 22,100, 22,000
Resistance: 22,200, 22,300