Nifty futures (22,100)

Nifty 50 opened Tuesday’s session lower at 21,948 versus last week’s close of 22,097. It then recovered marginally and is now hovering around 22,020, down about 0.4 per cent so far today.

The advances/ declines ratio of the Nifty 50 stands at 15/35, giving the index a bearish inclination. Bajaj Finance, up 2.2 per cent, is the top gainer, whereas Power Grid Corporation of India, down 2 per cent, is the top loser.

The mid- and small-cap indices appear mixed. However, all the sectors with the exception of Nifty Oil & Gas (up 0.3 per cent), are in the red. Nifty Media and Nifty Pharma, down 0.9 and 0.6 per cent, respectively, are the top losers.

Nifty 50 futures

The March futures of the Nifty 50 opened today’s session lower at 22,026, as against yesterday’s close of 22,165. It is currently trading around 22,100, down 0.3 per cent.

In early trade, the contract bounced off the support at 22,000. The chart indicates that Nifty futures could rally to 22,240 from here. Resistance above 22,240 is at 22,350.

On the other hand, if the contract slips below support at 22,000, we could see a downswing to 21,800.

Trading strategy

The heightened volatility today makes the risk for both long and short positions higher. Hence, we suggest that participants avoid initiating intra-day trades.

Supports: 22,000 and 21,800

Resistance: 22,240 and 22,350