Domestic benchmarks Nifty 50 (17,135) and BSE Sensex (58,140) began today’s session with a gap-down. However, both the indices have recovered and are now trading near yesterday’s closing level.

The bullish bias has been supported by the advance/decline ratio of the Nifty 50 which stands at 30/20. But the mid- and small-cap indices are mixed. Among the sectors, Nifty Media is the top gainer, up by 0.5 per cent, while Nifty IT is the top loser, down by 0.7 per cent.

There are no clear cues from the Asian equity markets as some major indices have advanced, while some other indices have declined. For instance, Nikkei 225 (27,390) and ASX 200 (6,970) are down 0.3 and 0.7 per cent, respectively. On the other hand, Hang Seng (19,750) and KOSPI (2,420) have gained 0.8 and 0.1 per cent, respectively.

Nifty 50 futures

The March futures of the Nifty 50 index opened the session lower at 17,125 against yesterday’s close of 17,185. It has now pared the losses and has recovered to 17,185.

If the bulls can lift the contract above the nearest key resistance at 17,200, we can see a swift rally to 17,270. A breakout of this level can lift the contract to 17,350. On the other hand, if the contract falls off the resistance at 17,200, it can find support at 17,100. Subsequent support is at 17,000.

Trading strategy

Buy Nifty futures if it breaks out of 17,200. Place stop-loss at 17,125. When it rallies past 17,270, shift the stop-loss to 17,200. Book profits at 17,350.

Supports: 17,100 and 17,000

Resistances: 17,270 and 17,350