Nifty 50 February Futures (23,619)
Nifty 50 continues to move down. The index is trading at 23,519, down 0.35 per cent. The advances/declines ratio is at 20:30. This indicates that the bias is negative. As such more fall could be on the cards during the day.
Nifty 50 Outlook
The fall today has taken the index below a key support level of 23,550. The region between 23,550 and 23,600 will now act as a strong resistance zone. As long as the Nifty trades below 23,600, the bias will remain negative. As fall to 23,400 is likely during the day.
To avoid this fall, Nifty has to sustain above 23,500 and breach 23,600. If that happens, then there is a possibility of a rise to 23,700-23,800.
Nifty 50 Futures
The Nifty 50 February Futures (23,619) is down about 0.3 per cent. The contract has declined below the key support level of 23,700. If this break sustains, then there is a danger of seeing a fall to 23,500-23,400 in the coming sessions.
The level of 23,750 is a crucial hurdle. The Nifty 50 February Futures has to breach this resistance to turn the outlook bullish. Only then a rise to 23,850-23,900 will come into the picture again.
Trade Strategy
Traders can go short on a break below 23,600. Keep the stop-loss at 23,630. Trail the stop-loss down to 23,575 as soon as the contract falls to 23,555. Move the stop-loss down to 23,545 when the contract touches 23,530. Exit the shorts at 23,520.
Supports: 23,600, 23,500
Resistances: 23,700, 23,750
