Nifty 50, the benchmark index, opened today’s session with a gap-up at 23,096 compared to yesterday’s close of 23,031. The index is currently trading at 23,050.
The advance/decline ratio stands at 21/28, showing a bearish inclination. Hindustan Unilever, up 1.5 per cent, is the top gainer whereas Adani Enterprises, down 2.8 per cent, is the top loser.
All mid- and small-cap indices are in the red. Also, most of the sectors are down too, indicating a broader sell-off. Nifty FMCG, up 0.9 per cent, is the top performing sector whereas Nifty Pharma and Nifty Healthcare, down 2 per cent each, are the weakest sectors.
Nifty 50 futures
The February futures of Nifty 50 began today’s session at 23,169 versus yesterday’s close of 23,108. It is now trading at 23,150, up 0.2 per cent.
Since the contract is below 23,200, there is a negative bias. There is a good chance for Nifty futures to drop to 23,080 or even to 22,940.
On the other hand, if the contract rallies past 23,200, it can extend the uptrend to 23,340, a resistance. Subsequent resistance is at 23,500.
Trading strategy
Short Nifty futures at 23,175 with a stop-loss at 23,240. When the contract falls to 23,000, tighten the stop-loss to 23,100. Exit at 22,940.
Supports: 23,080 and 22,940
Resistance: 23,200 and 23,340