Nifty 50 January Futures (23,205)

Nifty 50 seems to lack strong follow-through buying to stage a convincing upmove.  The price action indicates presence of strong sellers near 23,300. The index touched a high of 23,292 in the early trades and has come down sharply from there giving back all the gains. It is currently trading at 23,123, down 0.36 per cent. The advances/declines ratio is at 13:37. This gives a bearish signal and indicates that more fall is possible during the day.

Nifty 50 Outlook

The near-term outlook is bearish. The region between 23,250-23,300 can act as a good resistance and cap the upside. The chances are looking high for a fall to 23,000 in the coming sessions. A decisive break below 23,100 will clear the way for this fall.

A sustained rise above 23,300 will be needed to turn the outlook bullish. Only then a rise 23,400 and higher levels will come into the picture.

Nifty 50 Futures

The Nifty 50 January Futures (23,205) is down 0.25 per cent. The contract has come-off from the high of 23,321. Resistance is in the 23,300-23,350 region which is holding well for now. The contract looks vulnerable for a fall to 23,000 in the coming sessions.

A strong break above 23,350 is needed to turn the outlook bullish. Such a break can take the contract up to 23,600.

Trade Strategy

Traders can go short on a rise at 23,250 and 23,310. Keep the stop-loss at 23,380. Trail the stop-loss down to 23,210 as soon as the contract falls to 23,170. Move the stop-loss further down to 23,150 when the contract touches 23,000.  Exit the short positions at 23,060.

Supports: 23,100, 23,000

Resistances: 23,300, 23,350