Nifty 50 February Futures (22,623)
Nifty 50 has begun the week on a weak note. The index opened with wide gap-down 22,611.50 and is now currently trading at 22,583, down 0.9 per cent. The advances/declines ratio is at 12:38. This clearly indicates that the bias is negative.
Nifty 50 Outlook
Nifty has declined below the first key support level of 22,600. Failure to rise back above 22,600 can keep the index under pressure. The next important support is at 22,350 which can be tested in the coming sessions.
But from a long-term perspective, this 22,350 is a strong support level where the current fall can halt. We can expect the Nifty to rise back from around 22,350 going forward.
Nifty 50 Futures
The Nifty 50 February Futures (22,623) is down 0.9 per cent. The contract has declined below the key support level of 22,670. The outlook is bearish to see a fall to 22,400-22,350 in the coming sessions.
A strong rise above 22,700 is needed to ease the downside pressure. Only then the contract can rise back to 22,800 and higher.
Trade Strategy
Traders can go short now at 22,623. Add more shorts on a rise at 22,660. Keep the stop-loss at 22,720. Trail the stop-loss down to 22,590 as soon as the contract falls to 22,540. Move the stop-loss further down to 22,510 when the contract touches 22,470. Exit the short positions at 22,420.
Supports: 22,400, 22,350
Resistances: 22,670, 22,800