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Nifty 50 continues to hover near the psychological 23,000-mark. The price action over the last few days indicate that the index lacks strong follow-through rise above 23,000. Nifty is currently trading at 22,963, up 0.13 per cent. The advances-declines ratio is at 26:24.
Nifty 50 outlook
Intraday support is at 22,900. Intermediate resistance is around 23,030. A break above it can take the index up to 23,150-23,200 in the coming sessions.
Nifty has to break below 22,900 to fall more. This break can drag the index down to 22,800-22,780.
The intraday outlook is slightly mixed. The index can go either way from here — 22,900-23,030 are the levels to watch. A breakout on either side will determine the next move for the day.
Also read
Global indices
In Asia, Nikkei 225 (38,849) is down 0.13 per cent. Shanghai Composite (3,124) is trading flat. Kospi (2,726) and Hang Seng (18,934) are up 0.1 per cent and 0.6 per cent, respectively.
The US markets were closed on Monday on account of a public holiday.
Nifty 50 futures
The Nifty 50 May futures (23,020) is up 0.17 per cent. Support is in the 22,950-22,930 range. As long as the contract trades above this support zone, the bias is positive. The Nifty 50 May futures contract can rise to 23,200-23,250 in the coming sessions.
This rise will be negated only if the contract declines below 22,930, beyond which the contract can fall to 22,850 and even lower towards 22,730.
Trade strategy
We expect the support at 22,950 to hold. So, traders with an appetite for high risk can go long now at 23,020. Accumulate on dips at 22,980. Keep the stop-loss at 22,910 initially. Trail the stop-loss up to 23,060 when the contract goes up to 23,090. Move the stop-loss further up to 23,120 when the contract touches 23,145. Exit the longs at 23,180.
Supports: 22,930, 22,850
Resistances: 23,100, 23,200
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