Nifty 50 January Futures (21,754)

Nifty 50 has risen back well after witnessing a sharp fall on Monday. The index is currently trading at 21,668, up 0.72 per cent. Despite this bounce, Nifty has not yet recovered the losses registered on Monday. The charts indicate that 21,500-21,850 seems to be the trading range within which the Nifty has been oscillating over the last few days. So, we may have to wait for this range to breakout on either side to get clarity.

In Asia, Kospi (2,566) is flat. Nikkei 225 (33,672), Hang Seng (16,275) and Shanghai Composite (2,897) are all up in the range of 0.3-0.9 per cent.

The Dow Jones Industrial Average (37,683, up 0.58 per cent) had rose on Monday. It has an important resistance in the 37,800-37,850 region. Only a strong break above 37,850 will ease the downside pressure and take it up to 38,000 and higher. Else, the index will remain vulnerable to see 37,000 on the downside.

Nifty 50 Futures

The Nifty 50 January Futures (21,754) contract is up 0.81 per cent. The contract has recovered well from the low of 21,562 made on Monday. 21,550-21,850 has been the trading range over the last few days. A breakout on either side of this range will determine the next leg of move.

A break above 21,850 will be bullish to see 22,000 and higher levels. A break below 21,550 can drag the Nifty 50 January Futures contract down to 21,400 and lower.

Trade Strategy

Traders can stay out of the market. Wait for the range breakout and take trade positions accordingly.

Supports: 21,600, 21,550

Resistances: 21,800, 21850

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