Nifty 50 is trading lower. The index opened with a gap-down at 22,404.55 and then has managed to recover some of the loss from there. It is currently trading at 22,464, down 0.17 per cent. The advances/declines ratio is at 17:33. This leaves the bias negative.

Nifty 50 outlook

Nifty has support in the 22,450-22,400 region. This is holding well as of now. Resistance is in the 22,500-22,520 region. As long as the Nifty stays above 22,400, the near-term outlook will be positive. A break above 22,520 can take the Nifty up to 22,630. The index will come under pressure for a fall to 22,300 only if it declines below 22,400.

Global indices

Asian markets are all in red. Hang Seng (19,234) has been beaten down the most by 2 per cent. Kospi (2,726) and Shanghai Composite (3,158) are down 0.6 and 0.4 per cent respectively. Nikkei 225 (39,046) is marginally down by 0.06 per cent.

The Dow Jones Industrial Average (39,806) was down 0.49 per cent on Monday. The index has been oscillating around the psychological 40,000 mark over the last few days. Failure to get a strong follow-through rise above 40,000 can drag it down to 39,500 this week.

Nifty 50 Futures

The Nifty 50 May Futures (22,530) is down 0.06 per cent as of now. The immediate outlook is slightly unclear. Support is around 22,470. Resistance is at 22,580. So, 22,470-22,580 can be the trading range for now. We will have to wait for a breakout on either side of this range to get clarity.

A break above 22,580 will be bullish to see 22,700. On the other hand, a break below 22,470 can drag the Nifty 50 May Futures contract down to 22,400 and even lower.

Trade Strategy

Since the Nifty 50 May Futures contract is looking range bound and unclear for the day, we suggest traders to stay out of the market.

Supports: 22,470, 22,400

Resistances: 22,580, 22,700

Related Topics