Nifty 50 March Futures (22,675)
Nifty 50 is managing to hold on to the gains made last week. The index has begun the week on a positive note and is trading higher. Nifty is currently at 22,625 up 0.32 per cent. The advances/declines ratio is at 33:17. This keeps the sentiment positive.
Nifty 50 Outlook
The rise above 22,600 today is a positive for the Nifty (22,625). Immediate support for the day could be at 22,580. Below that 22,530-22,500 will be the next strong support zone. A strong follow-through rise from here can take the Nifty up to 22,800 in the coming sessions.
Nifty will come under pressure again only if it declines below 22,500. That will drag the down to 22,400-22,300.
Our preference is to see the Nifty sustaining above 22,500 and rise to 22,800.
Nifty 50 Futures
The Nifty 50 March Futures (22,675) is up 0.1 per cent. The contract is stuck in between 22,570 and 22,740 for some time now. A breakout on either side of this range will determine the next move.
A break below 22,570 will be bearish. It can drag the contract down to 22,350. On the other hand, a break above 22,740 can boost the bullish momentum. Such a break can take the Nifty 50 March Futures contract up to 22,850 and 22,950 in the coming sessions.
Trade Strategy
Traders can wait for the contract to breakout above 22,740 and go long after that. Keep the stop-loss at 22,690. Trail the stop-loss up to 22,770 as soon as the contract goes up to 22,795. Move the stop-loss further up to 22,805 when the contract touches 22,820. Exit the longs at 22,850.
Supports: 22,570, 22,350
Resistances: 22.740, 22,850