Nifty 50 March Futures (22,576)
Nifty50 is trading marginally lower today. It is currently trading at 22,462, down 0.05 per cent. The strong rise from the low of 22,224 on Wednesday leaves the outlook positive. As such dips are likely to get bought today.
Nifty 50 outlook
Support is in the 22,450-22,400 region. A fall below 22,400 looks less likely. Even if the Nifty comes down from here during the day, the downside is likely to be limited. We can expect a reversal anywhere from the 22,450-22,400 region which can take the Nifty up to 22,650-22,700 in the coming sessions.
Global Indices
The major Asian indices are in red today. Nikkei 225 (39,718) is down 0.9 per cent. Hang Seng (16,361) and Shanghai Composite (3,035) are down 0.47 and 0.16 per cent, respectively. Kospi (2,640) is flat.
The Dow Jones Industrial Average (38,661) has recovered slightly on Wednesday after witnessing a sharp fall the previous day. The broader picture is turning weak. The Dow will now need a sustained break above 39,000 to bring back the bullishness. As long as it trades below 39,000, the outlook is negative. The Dow Jones can fall to 38,500-38,000 in the short-term.
Nifty 50 Futures
The Nifty 50 March Futures (22,576) is down 0.06 per cent. Support is in the 22,550-22,500 region. We expect this support to hold. Nifty 50 March Futures contract has potential to see 22,650 on the upside. But the price action thereafter will need a close watch. Failure to breach 22,650 can trigger a corrective fall.
Trade Strategy
Traders can wait for dips. Go long at 22,560 and 22,520. Keep the stop-loss at 22,485. Trail the stop-loss up to 22,580 as soon as the contract moves up to 22,610. Move the stop-loss further up to 22,605 when the contract touches 22,625. Exit the longs at 22,640.
Supports: 22,550, 22,500
Resistances: 22,650, 22,700