Nifty 50 opened with a gap-down today at 22,568 versus Tuesday’s close of 22,605. But it recovered post the open and is now trading around 22,660, up 0.3 per cent.

The advance/decline ratio stands at 32/18, giving the index a bullish bias. Power Grid Corporation of India, up 4.3 per cent, is the top gainer in the index. Kotak Mahindra Bank, down 3.8 per cent, is the top loser.

Supporting the positive bias, the mid- and small-cap indices are in the green.

Among the sectors, Nifty Auto, up 0.85 per cent, is the top gainer whereas Nifty Realty, down 1.3 per cent, is the top loser.

Nifty 50 futures

The May futures of Nifty 50 opened today’s session slightly lower at 22,702 compared to previous session’s close of 22,718. It is currently trading at 22,775, up 0.25 per cent.

As the contract has now recovered back above 22,750, the probability of it rallying further today is high. The nearest notable resistance is at 22,950.

On the other hand, if Nifty futures decline from the current level, it can find support at 22,700. Subsequent support is at 22,600.

Trading strategy

Buy Nifty futures now at 22,775 and accumulate at 22,720. Place stop-loss at 22,650. When the contract touches 22,900, tighten the stop-loss to 22,800. Book profits at 22,950.

Supports: 22,700 and 22,600

Resistance: 22,950 and 23,200