Nifty 50 March Futures (22,323)
Nifty 50 is getting some relief rally today. The index is currently trading at 22,237, up 0.7 per cent. Broadly the index is managing to stay above the psychological 22,000 mark. It is important for it to get a strong buying to take it up and sustain higher. The advances/declines ratio is at 42:8. This is positive. But need to see if this sustains or not.
Nifty 50 outlook
The strong rise above 22,120 is a positive. Immediate support is at 22,180. Resistance is at 22,270. A break above this resistance can take the index up to 22,330 during the day.
In case the index declines below 22,180, Nifty can fall back to 22,100-22,050 again.
Nifty 50 Futures
Nifty 50 March Futures (22,323) is up 0.60 per cent. The contract has just risen above the key resistance level of 22,300. Another important resistance is at 22,380. The contract has to break above this second resistance in order to move higher. A decisive break above 22,380 can take the Nifty 50 March Futures contract up to 22,500 and even higher in the coming sessions.
On the other hand, if the contract declines below 22,300, then it can fall back to 22,200 and lower again.
Trade strategy
Traders can wait and go long only after a break above 22,380. Keep the stop-loss at 22,340. Trail the stop-loss up to 22,410 as soon as the contact moves up to 22,440. Move the stop-loss further up to 22,450 when the contract touches 22,465. Exit the long positions at 22,480.
Supports: 22,300, 22,200
Resistances: 22,380, 22,500