Nifty 50 has come down sharply from its intraday high of 22,297.55. The index has declined sharply from there giving back all the gains. It is currently trading at 22,185, down 0.15 per cent. The advances/decline ratio is at 16:34. This gives a bearish bias. If this sustains, more fall could be on the cards.
Nifty 50 outlook
Nifty has an important support at 22,160. If it declines below it, then a fall to 22,070 and even 22,000 can be seen during the day. Incase the index manages to sustain above this support and bounces back above 22,200 again, then a rise back 22,300 is possible. That will keep the broader view bullish to see 22,400-22,500 on the upside in the coming sessions.
Global indices
Asian markets are mixed. Nikkei 225 (38,402) is up 0.12 per cent. Shanghai Composite (3,140) is down 0.17 per cent. Kospi and Hang Seng are closed today.
The Dow Jones Industrial Average (39,558) was up 0.32 per cent on Tuesday. The outlook remains bullish to see 39,900-40,000 on the upside. Whether it breaks above 40,000 or not will then determine the next move. The US inflation data release will need a close watch today. The outcome of that data could set the trend going forward.
Nifty 50 Futures
The Nifty 50 May Futures (22,245) is down 0.28 per cent. The price action indicates that the contract is getting sellers around 22,400. That leaves the intraday outlook negative. The contract can fall to 22,150-22,100 during the day. To negate this fall, the contract has to rise above 22,300 from here.
Trade strategy
Trades with high-risk appetite can go short now at 22,245. Keep a stop-loss at 22,310. Trail the stop-loss down to 22,210 when the contract falls to 22,180. Move the stop-loss further lower to 22,170 when the contract touches 22,140. Exit the shorts at 22,110.
Supports: 22,150, 22,100
Resistances: 22,300, 22,400