Nifty 50 March Futures (22,695)
Nifty 50 is managing to sustain higher. The index is currently trading at 22,563, up 0.08 per cent. The advances/declines ratio is at 25:25. This gives a mixed picture. It will be important to see on which side (advances or declines) does the market shifts to.
Nifty 50 Outlook
The outlook is positive. Nifty can rise to 22,650 during the day. The price action thereafter will need a close watch. If Nifty manages to breach 22,650, then an extended rise to 22,730-22,750 can be seen in the coming sessions.
On the other hand, if Nifty reverses lower from around 22,650, it can fall back to 22,450-22,400. For now, we can allow for a rise to 22,650 and then have to watch the price action.
Nifty 50 Futures
The Nifty 50 March Futures (22,695) is up 0.33 per cent. The break above 22,600 is a positive. There is room on the upside to see 22,800-22,900 in the coming sessions.
The outlook will turn negative only if the contract declines below 22,600, If that happens, we can see a fall to 22,500-22,400 and even lower again. But such a fall looks less likely at the moment.
Trade Strategy
Traders can go long now at 22,695 and accumulate at 22,620. Keep the stop-loss at 22,540. Trail the stop-loss up to 22,720 as soon as the contract goes up to 22,750. Move the stop-loss further up to 22,780 when the contact reaches 22,810. Revise the stop-loss higher to 22,820 when the contract touches 22,850. Exit the long positions at 22,880.
Supports: 22,600, 22,500
Resistances: 22,800, 22,900