Nifty 50 February Futures (22,910)
Nifty 50 has risen well from its key support on Monday. However, it seems to lack a strong follow-through buying now. The index touched a high of 22,992 in the early trades and has come down slightly. It is currently trading at 22,895, down 0.28 per cent. The advances/declines ratio is at 11:39. This leaves the bias negative for now.
Nifty 50 Outlook
Nifty seems to be facing resistance from the psychological level of 23,000. The index has to surpass 23,000 decisively in order to gain momentum. If that happens, we can see a rise to 23,250 in the coming sessions.
On the other hand, if the index continues to trade below 23,000 and declines below 22,850, it can come under pressure. In that case, Nifty can fall back to 22,750-22,700 again.
Nifty 50 Futures
The Nifty 50 February Futures (22,910) is down 0.5 per cent. The contract is facing resistance in the 23,000-23,050 region. Failure to rise back above 23,000 from here can drag the contract down to 22,800. A break below 22,800 will see the fall extending to 22,700 in the coming sessions.
On the other hand, a break above 23,050 is needed to boost the bullish momentum. Such a break can take the contract up to 23,250 initially and then to 23,400 eventually in the coming sessions.
Trade Strategy
Traders can stay out of the market now. Take fresh long positions only if the contract breaks above 23,050. Keep the strop-loss at 22,950. Trail the stop-loss up to 23,090 as soon as the contract moves up to 23,150. Move the stop-loss further up to 23,170 when the contract goes up to 23,210. Exit the longs at 23,250.
Supports: 22,800, 22,700
Resistances: 23,050, 23,250
