Nifty 50 February Futures (22,545)
Nifty 50 remains lower and is struggling to get strong buyers. The benchmark index has been stuck in between 22,500 and 22,700 over the last few days. Within in this range, Nifty is currently trading at 22,543, down marginally by 0.03 per cent. The advances/declines ratio is at 16:34. This still indicates that the sentiment is negative in the market.
Nifty 50 Outlook
The immediate outlook is unclear. 22,500-22,700 can continue to remain as the trading range for now. A breakout on either side of this range will determine the next move.
A break below 22,500 can take the Nifty down to 22,350. On the other hand, a decisive break above 22,700 can ease the downside pressure. Such a break can take the index up to 22,800 and even 23,000 in the coming days. We will have to wait and watch.
Nifty 50 Futures
The Nifty 50 February Futures (22,545) is down 0.16 per cent. A crucial support is at 22,530. A break below it can increase the selling pressure. Such a break can take the contract down to 22,350 in the coming session.
On the other hand, if the contract manages to sustain above 22,530, a bounce to 22,650-22,700 is possible during the day.
Trade Strategy
Traders have to take fresh short positions only after a break below 22,530 happens. Keep the stop-loss at 22,580. Trail the stop-loss down to 22,510 as soon as the contract falls to 22,490. Move the stop-loss further down to 22,440 when the contract touches 22,410. Exit the short positions at 22,370.
Supports: 22,530, 22,350
Resistances: 22,650, 22,700
