Nifty 50 has managed to stay afloat and is attempting to bounce back. The index is currently trading at 22,590, up 0.17 per cent. The support at 22,500 is holding well for now. The advances/ declines ratio is at 31:19 and it leaves the bias positive. This trend has to sustain for the Nifty to see more recovery during the day.
Nifty 50 Outlook
Nifty is getting support in the 22,550-22,500 region. If this sustains, a rise to 22,650-22,670 is possible during the day. The level of 22,670 is a key resistance, which will need close watch. A strong break above 22,670 is needed to give the Nifty a breather and ease the downside pressure. If that happens, Nifty could see a rise to 22,750-22,800 in the coming sessions.
Nifty 50 futures
The Nifty 50 February futures (22,590) is down 0.1 per cent. The contract is stuck in a narrow range of 22,550-22,650. Crucial resistance is in the 22,680-22,700 region. A strong break above 22,700 is needed for the contract to ease the downside pressure. Only then can a rise to 22,800-22,900 happen.
As long as the contract trades below 22,700, it will remain vulnerable to break 22,550. Such a break can drag the Nifty 50 February ffutures contract down to 22,400-22,350.
Trade Strategy: Considering the risk/reward ratio, we suggest traders stay out of the market today.
Supports: 22,550, 22,400
Resistances: 22,650, 22,700
