Nifty 50 February Futures (23,590)
Nifty 50 has recovered very well after witnessing a sharp fall on Monday. The index opened with a wide gap-up today and is trading higher. It is currently at 23,552, up 0.82 per cent. The advances/declines ratio is at 35:16. This is positive.
Nifty 50 Outlook
Nifty has resistance in the 23,600-23,650 region. A strong break above 23,650 can take the index up to 23,800 and even 24,000 in the coming sessions.
Failure to breach 23,650 can take the index down to 23,400. A sideways consolidation between 23,400 and 23,650 is a possibility in that case. The index will come under pressure again only if it breaks below 23,400. If that happens, a fall to 23,200-23,150 can be seen.
Nifty 50 Futures
The Nifty 50 February (23,590) is up 0.6 per cent. The contract has support at 23,540 and then at 23,460. The near-term outlook is bullish to see a rise to 23,850 in the coming sessions. A break above 23,650 can trigger this rise.
The outlook will turn negative only if the contract declines below 23,460. If that happens, we can see a fall to 23,300.
Trade Strategy
Positional trades can be considered at this point of time rather than an intraday trade.
Traders can wait for dips. Go long at 23,540 and 23,480. Keep the stop-loss can be kept at 23,410. Trail the stop-loss up to 23,620 as soon as the contract goes up to 23,680. Move the stop-loss further up to 23,720 when the contract touches 23,750. Exit the long positions at 23,780.
This trade can be held for this week.
Supports: 23,540, 23,460
Resistances: 23,650, 23,800
