Nifty 50, the benchmark index, opened today’s session flat at 23,056 compared to yesterday’s close of 23,045. The index is currently trading at 23,200, up 0.7 per cent.
The advance/decline ratio stands at 42/5, showing a positive inclination. Tata Steel is the top gainer of Nifty 50 by advancing 3.2 per cent. Adani Enterprises, down 1.2 per cent, is the top loser.
Like the benchmark index, all mid- and small-cap indices are in the green. Among the sectors, except Nifty IT (down by a marginal 0.1 per cent), all others have gained. Nifty Pharma, up 1.8 per cent, is the top gainer.
Nifty 50 futures
The February futures of Nifty 50 began today’s session at 23,119 versus yesterday’s close of 23,124. It is now trading at 23,260, up 0.6 per cent.
Though there is an upward bias in Nifty futures, it should be noted that there is a resistance at 23,280. Above this is another resistance at 23,340. Only a decisive breakout of 23,340 can turn the trend positive. Resistance above 23,340 is at 23,500.
On the other hand, if the contract declines from the current level, it can find support at 23,150 and 23,070. Subsequent support is at 22,920.
Trading strategy
Risk-reward is unfavourable at the current level even though the trend appears bullish. Therefore we suggest staying out.
Supports: 23,150 and 23,070
Resistance: 23,280 and 23,340
