Nifty 50 March Futures (22,528)
Nifty 50 has begun the week on a weak note. The index trading at 22,438 is down 0.25 per cent. The advance/decline ratio is at 29:21. Though the bias here looks positive, it is important for this to sustain.
Nifty 50 outlook
Immediate support is at 22,400. Below that 22,350 is a strong intraday support. Although an intraday dip to 22,350 cannot be ruled out, a break below it is less likely. As such we can expect the Nifty to reverse higher again from around 22,350 and move back up to 22,500.
Key resistance to watch is around 22,530. A strong break above it will see the Nifty surging to new highs going forward.
Global indices
Asian markets are trading mixed. Nikkei 225 (38,576) is down sharply by 2.8 per cent. Kospi (2,668) is down 0.43 per cent. Hang Seng (16,562) and Shanghai Composite (3,052) are down 1.28 and 0.21 per cent respectively.
The Dow Jones Industrial Average (38,722.69) had come-off sharply from the high of 38,971 on Friday. This indicates lack of strong buyers to take the index above 39,000. It leaves the bias bearish. As such, the Dow Jones can fall to 38,500 and 38,000 this week.
Nifty 50 Futures
The Nifty 50 March Futures (22,528) is down 0.1 per cent. Immediate support is at 22,500. A break below it can take the contract down to 22,450 during the day. However, a further fall below 22,450 is less likely. We can expect the contract to reverse higher either from 22,500 itself or from around 22,450 and rise to 22,500.
Resistance is around 22,620. A break above it can take the Nifty 50 Futures contract up to 22,700.
Trade Strategy
Traders can go long at 22,510 and 22,470. Keep a stop-loss at 22,440. Trail the stop-loss up to 22,530 as soon as the contract moves up to 22,555. Move the stop-loss further up to 22,560 when the contract touches 22,575. Exit the long positions at 22,590.
Supports: 22,500, 22,450
Resistances: 22,620, 22,700