The Indian benchmark indices – Nifty 50 (17,705) and Sensex (60,175) – opened the session with a minor gap-up following the positive cues from Asia. However, both indices were not able to build a rally and have given up the gains. For the day, both Nifty 50 and Sensex are down by one-third of a per cent so far.

Supporting the bearish bias, the advance/decline ratio of Nifty 50 stands at 15/35. Interestingly though, many of the mid- and small-cap indices are in the green. Among the sectors, Nifty Metal (up by 0.6 per cent) and Nifty Healthcare (up by 0.2 per cent) are the only gainers. Other sectoral indices are in the red led by Nifty Auto, down by 0.6 per cent.

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Nifty 50 futures

The March futures of the Nifty 50 index opened the session almost flat at 17,790 as against yesterday’s close of 17,795. However, it has now declined to 17,715.

But note that the Nifty futures has a support at 17,700 and 17,630. Either of these levels are likely to arrest the decline.

On the other hand, the contract faces resistance at 17,800 and 17,860. Thus, broadly, the contract is trading within the range of 17,630 – 17,860 and the direction of the break of this range will lend us a clue about the next leg of trend.

That said, we do not anticipate a breach of either of the boundaries of the above-mentioned range today.

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Trading strategy

The price action indicates that there is a good chance for Nifty futures to stay flat today. Therefore, we suggest not to take intraday trades.

Supports: 17,700 and 17,630

Resistance: 17,800 and 17,860

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