The Indian benchmark indices – the Nifty 50 (17,165) and the Sensex (58,260) – opened with a gap-up and are now trading higher by 0.3 per cent each. Both indices appear positive, and the likelihood of a rally looks high.
The advances/declines ratio of the Nifty 50 shows a bullish bias as it stands at 36/14. All the mid- and small-cap indices are in the green. Besides, all the sectors have advanced, indicating broad-based buying.
Nifty PSU Bank and Nifty Auto are the top performing indices, up by 1.2 and 0.9 per cent respectively.
In addition, the equity markets across Asia have rallied. Among the major indices, Nikkei 225 (27,500), ASX 200 (7,020), Hang Seng (19,690) and KOSPI (2,415) are up between 1 and 2.2 per cent today.
Nifty 50 futures
The March futures of the Nifty 50 index opened the session higher at 17,211, against yesterday’s close of 17,160. It is currently hovering around 17,210.
The price action indicatesthat the contract is likely to advance from the current level. While the nearest resistance is at 17,270, we expect a further move up, possibly to 17,350.
On the other hand, if the contract falls from here, it could find support at 17,100 and at 17,000.
Trading strategy
Go long at the current level of 17,200. Add more longs when the price dips to 17,120. Place stop-loss at 17,050. When the contract surpasses 17,270, tighten the stop-loss to 17,180. Book profits at 17,350.
Note that the above trade recommendation is for intra-day. So, exit the positions by the end of the day, even if either the target or stop-loss levels are not hit.
Supports: 17,100 and 17,000
Resistance: 17,270 and 17,350