Nifty 50, the benchmark index, opened today’s session higher at 23,099 versus yesterday’s close of 23,025. The index is currently trading at 23,090, up 0.3 per cent.
The advance/decline ratio stands at 26/24. Thus, there is not much of an indication from market breadth. Wipro, up 2.2 per cent, is the leader in Nifty 50 so far today. On the other hand, Bharat Electronics, down nearly 3 per cent, is the top loser.
While Nifty 50 is in the green, the mid- and small-cap indices are in the red. Also, many sectoral indices too have been facing downward pressure so far today.
Among the sector, Nifty IT, up about 0.8 per cent, is the top gainer. Notably, it is the IT stocks that have pushed the benchmark Nifty 50 up today. Nifty Realty, down 2.8 per cent, is the top loser.
The Asian equity market gives a bullish bias. Among the major indices, Nikkei 225 (39,620), ASX 200 (8,430) and KOSPI (2,550) have gained between 0.3 per cent and 1.6 per cent so far today.
Nifty 50 futures
The January futures of Nifty 50 began the session higher at 23,164 versus yesterday’s close of 23,103. It is now trading around 23,130, up 0.1 per cent.
While the contract has been trying to rally, it is facing a hurdle at 23,200. Only a breach of this can lead to some upside, possibly to 23,280 and 23,420, which are resistance points.
On the other hand, if the contract falls from the current level, it can find support at 23,000. Subsequent support is at 23,900.
Note that, from a broader timeframe, the price band of 23,000-22,900 is a strong support. So, the sellers need to stay cautious at current levels.
Trading strategy
Rise averse traders can stay out at this juncture. Ones who can take higher risk can short Nifty futures at 23,200. Target and stop-loss can be 23,000 and 23,320 respectively.
Supports: 23,000 and 22,900
Resistance: 23,200 and 23,280
