The Indian benchmark indices – the Nifty 50 (17,080) and Sensex (57,950) – are looking positive as they are up a little over half-a-per cent each today. The price action hints that the indices are likely to appreciate further through the day.

The advances/ declines ratio of the Nifty 50 index is in favour of bulls as it stands at 32/ 18. All the mid- and small-cap indices have advanced today. Among the sectors, barring Nifty IT (down 0.5 per cent) and Nifty FMCG (down 0.4 per cent), all the others are in the green. Nifty Media and Nifty Consumer Durables are the top performers, up by 1.2 and 1 per cent respectively.

The positive equity market sentiment is also substantiated by rallying Asian indices. ASX 200 (6,960), Hang Seng (19,050) and KOSPI (2,390) are up between 0.25 and 0.9 per cent today.

Nifty 50 futures

The March futures of the Nifty 50 index opened the session higher at 17,090, against yesterday’s close of 17,025. It moved up post the open and is now hovering around 17,115.

The probability that the contract will appreciate to 17,200 is high. A breach of this hurdle can lift it further to 17,270 – a strong barrier. A rally beyond this level might not occur today.

On the other hand, if the Nifty futures declines from the current level, it has support at 17,000 and 16,900.

Nevertheless, the inclination seems to be bullish and so traders can consider long positions.

Trading strategy

Buy Nifty futures at 17,115. Add more longs in case the price softens to 17,060. Place the initial stop-loss at 17,000. When the contract touches 17,200, tighten the stop-loss to 17,100. Book profits at 17,270.

Note that the above trade recommendation is for intraday. So, exit the positions by the end of the day if either the target or stop-loss levels are not hit.

Supports: 17,000 and 16,900

Resistance: 17,200 and 17,270