Nifty futures (22,185)

Nifty 50 opened today’s session higher at 22,054 versus yesterday’s close of 22,005. The index extended the upside to mark a high of 22,163. It is now hovering around 22,160, up 0.7 per cent.

The advances /declines ratio of the Nifty 50 stands at 37/13, giving the index a bullish inclination. Adani Ports, up 2.9 per cent, is the top gainer, whereas Apollo Hospitals, down 1 per cent, is the top loser.

The mid- and the small-cap indices, too, like the benchmark, are in the green. Among the sectors, barring Nifty FMCG and Nifty Healthcare (down 0.1 per cent each), others have gained so far today.

Nifty Oil & Gas, up 1.4 per cent, and Nifty Realty, up 1.2 per cent, are the top gainers.

Nifty 50 futures

The March futures of Nifty 50 opened today’s session almost flat at 22,099, as against yesterday’s close of 22,089. It is currently trading around 22,185, up 0.4 per cent.

There is a strong resistance ahead for Nifty futures at 22,240. A break-out of this will confirm an inverted head and shoulder pattern in the hourly chart. According to this pattern, a breach of 22,240 can lead to a rally to 22,680.

However, en route to 22,680, the contract will face minor resistance at 22,400 and 22,540.

On the other hand, if Nifty futures declines from the current level of 22,185, it will find support at 22,100 and 22,000. A breach of 22,000 will bring back the bearish bias. Support below 22,000 is at 21,800.

Trading strategy

One can buy Nifty futures if it breaks out of the resistance at 22,240. Place initial stop-loss at 22,100. When the contract surpasses the hurdle at 22,400, tighten the stop-loss to 22,280. Raise the stop-loss further up to 22,380 when the price hits 22,480. Exit at 22,540.

Supports: 22,100 and 22,000

Resistance: 22,400 and 22,540