Nifty 50, the benchmark index, opened today’s session with a gap-down at 22,810 compared to Friday’s close of 22,929. The index is currently trading at 22,770, down 0.7 per cent at the end of the first hour of today’s trade.
The advance/decline ratio stands at 11/39, showing a bearish inclination. Sun Pharmaceutical Industries is the top gainer in the index by advancing 0.8 per cent. On the other hand, Mahindra & Mahindra, down 4.4 per cent, is the top loser.
All mid- and small-cap indices are in the red and volatility has shot up. India VIX, the volatility index, has gone up by over 7 per cent today to 16.10.
Also, among the sectors, barring Nifty Pharma (up 0.5 per cent) and Nifty Healthcare (up 0.3 per cent), all others are down so far today.
Nifty Auto (down 1.6 per cent) and Nifty Realty (down 1.2 per cent) are the top losers until now.
Nifty 50 futures
The February futures of Nifty 50 began today’s session lower at 22,945 versus Friday’s close of 22,996. It is now trading at 22,850, down 0.6 per cent.
As the contract has slipped below the support at 22,940, there is a chance for it to extend the downswing to 22,800. A breach of this can drag Nifty futures to 22,700 today.
On the other hand, if there is a recovery, 22,940 will act as a hurdle. If the bulls can lift Nifty futures above 22,940, we might see a rally to 23,100, a potential intraday resistance. Subsequent barrier is at 23,250.
Trading strategy
Short Nifty futures at 22,850 and on a rise to 22,920. Target and stop-loss for intraday can be 22,700 and 23,000 respectively.
Note that this trade carries higher risk as the underlying Nifty 50 index is hovering near a crucial support, which can trigger a recovery. So, risk-averse traders can stay out.
Supports: 22,800 and 22,700
Resistance: 22,940 and 23,100
- Also read: Stock Market Live Updates 17 Feb 2025: Sensex, Nifty extend losing streak as sell-on-rally sentiment prevails
