Nifty 50 January Futures (24,094)

Nifty 50 has risen well breaking above the key resistance of 23,900. The index was struggling to rise past this hurdle since the beginning of this week. The index is currently trading 23,922, up 0.72 per cent. It is important now for the Nifty to sustain above 23,900 and get a strong follow-through rise from here.

Nifty 50 Outlook

Support will now be in the 23,900-23,870 region. If the Nifty manages to sustain above 23,870 a rise to 24,000-24,100 is possible during the day.

The index will come under pressure again only if it falls below 23,870. If that happens, Nifty can decline to 23,800 and even 23,650 again.

So, the price action now will need a very close watch.

Nifty 50 Futures

The Nifty 50 January Futures (24,094) is up 0.75 per cent. Immediate resistance is at 24,120. A break above it will take the contract up to 24,300 in the next few sessions.

In case the contract turns down from around 24,120, then an intraday fall to 23,900. The level of 23,900 is a strong support. The broader picture will remain positive as long as the contract trades above this support.

The contract will come under pressure for a fall to 23,600 only if it declines below 23,900.

Trade Strategy

Traders can go long on a break above 24,120. Keep the stop-loss at 24,080. Trail the stop-loss up to 24,150 as soon as the contract moves up to 24,185. Move the stop-loss further up to 24,200 when the contract touches 24,215. Exit the long positions at 24,240.

Supports: 23,900, 23,600

Resistances: 24,120, 24,300