Nifty 50 January Futures (21,752)

Nifty 50 is trading lower. The index touched a high of 21,763.95 in early trades and has come down from there. Nifty is currently trading at 21,695, down 0.07 per cent. 

The broad region between 21,750 and 21,830 is a very strong support zone. Nifty has to surpass 21,830 decisively to strengthen the bullish case. Such a break can take the Nifty up to 21,900-22,000 in the near-term. Intermediate support is at 21,600. A break below it can take the index down to 21,500 and lower.

For now, 21,600-21,830 can be the broad trading range. A breakout on either side of this range will determine the next direction of move.

Global indices

In Asia, barring the Nikkei 225 (33,377, up 0.27 per cent), other major indices are in red. Kospi (2,568) and Shanghai Composite (2,902) are down in the range of 0.4 per cent and 0.9 per cent, respectively. Hang Seng (16,197) is down over 2 per cent.

The Dow Jones Industrial Average (37,466) was marginally up by 0.07 per cent on Friday. The index is struggling to breach 37,800 which leaves the outlook negative. The Dow Jones can fall to 37,100-37,000 in the coming days.

Nifty 50 Futures

The Nifty 50 January Futures (21,752) is down 0.2 per cent. Resistance at 21,830 is holding very well. That leaves the bias negative for the Nifty 50 January Futures contract to fall to 21,600 during the day. A break below 21,400 will increase the selling pressure. Such a break can drag the contract down to 21,400 in the coming days.

A strong break above 21,830 is needed to ease the downside pressure. Such a break will be bullish to see 22,000 on the upside.

Trade Strategy

Traders can go short now. Accumulate on a rise at 21,785. Keep the stop-loss at 21,840. Trail the stop-loss down to 21,730 as soon as the contract falls to 21,710. Move the stop-loss further down to 21,690 when the contract touches 21,660 on the downside. Exit the short positions at 21,620.

Supports: 21,600, 21,400

Resistances: 21,830, 22,000

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