Nifty 50 January Futures (23,763)

Nifty 50 is struggling to rise. Although it traded higher on Monday, a strong follow-through rise did not happen. The index has come down and is trading at 23,668, down 0.16 per cent. The advances/declines ratio is at 13:37. This is negative. If this trend sustains, then Nifty can fall more during the day.

Nifty 50 outlook

The price action indicates that Nifty is facing strong resistance around 23,800. So, as long as the index trades below 23,800 the bias will remain negative. A test of 23,600 looks likely now. A break below 23,600 can drag the Nifty down to 23,500-23,450 in the coming sessions.

A decisive rise above 23,800 is needed to gain bullish momentum. Only then a rise to 24,000 will come into the picture.

Nifty 50 Futures

The Nifty 50 January Futures (23,763) is down 0.13 per cent. The contract has failed to breach the resistance at 23,900 and has come down. Intermediate support is at 23,700. A break below it can take the Nifty 50 January Futures contract down to 23,600-23,500 in the coming sessions.

The contract has to break above 23,900 to ease the downside pressure. Only then a rise to 24,200-24,250 will come into the picture.

Trade Strategy

Go short on a break below 23,700. Keep the stop-loss at 23,740. Trail the stop-loss down to 23,670 when the contract falls to 23,640. Move the stop-loss further down to 23,630 when the contract touches 23,605. Exit the shorts at 23,580.

Supports: 23,700, 23,600

Resistances: 23,900, 24,200