Nifty 50 February Futures (17,863)
Sensex and Nifty 50 have risen back after having fallen on Monday. Sensex is trading up 0.5 per cent and Nifty 0.4 per cent. Nifty has bounced back above 17,800 again and hovers around 17,836 givingrelief for the index. However, it is important for the Nifty to sustain above 17,800 and get a strong follow-through buying from here. A fall below 17,800 again can bring the index under pressure and drag it to 17,700 and lower levels.
Global indices
In Asia, Shanghai Composite (3,283) is flat while other major indices are in green. Nikkei 225 (27,596), Kospi (2,474) and Hang Seng (21,211) are all up in the range of 0.2-0.8 per cent.
In the US, the Dow Jones Industrial Average (34,245) had begun the week on a strong note. It has surged over a per cent on Monday. It is now coming closer to the upper end of its 33,500-34,500 range. The bias is bullish for the Dow to break 34,500 and rise to 35,500 in the coming days.
Nifty 50 Futures
The Nifty 50 February Futures (17,863) contract is up 0.35 per cent. The contract can rise to 17,900-17,920 from here. A break above 17,920 will then open the doors to test 17,980-18,000. Intraday support is at 17,820-17,800.
The contract will come under pressure only if it breaks below 17,800. Such a break will take the contract down to 17,750-17,700.
Trading strategy
Traders can wait for dips and go long at 17,840. Keep the stop-loss at 17,810. Trail the stop-loss up to 17,860 when the contract moves up to 17,885. Move the stop-loss further up to 17,890 when it touches 17,910 on the upside. Exit the longs at 17,920.
Support: 17,800, 17,750
Resistances: 17, 920, 17,980