The Indian benchmark indices – the Nifty 50 (17,440) and the Sensex (59,220) – rallied in the first hour of trade. However, it did not sustain and both indices have scaled back and are now up by about 0.1 per cent for the day.

The market breadth of Nifty 50 is showing a bearish bias as the advance/decline ratio stands at 22/27. All the mid- and small-cap indices too are in the red. Among the sectors, Nifty Financial services is the top gainer, up by 0.5 per cent. On the other hand, Nifty Media is the top loser, down by 1.6 per cent.

Nifty 50 futures

The March futures of the Nifty 50 index opened the session almost flat at 17,460 against last week’s close of 17,452. It is currently trading at 17,480.

The immediate support and resistance from the current level are at 17,400 and 17,550 respectively. A clear breach of 17,550 can turn the intraday trend bullish whereas a break below 17,400 can keep the contract under pressure.

Support below 17,400 is at 17,350; resistance above 17,550 is at 17,630.

Trading strategy

There is no clear indication on the possible intraday trend. The direction of breach of the price band 17,400-17,550 can give us some clue about the next leg of trend.

Therefore, we suggest traders to stay away until Nifty futures move out of the above-mentioned range.

Supports: 17,400 and 17,350

Resistance: 17,550 and 17,630