Nifty 50 opened with a gap-up today at 22,476 versus Friday’s close of 22,420. By the end of the first hour of trade, the index is hovering around 22,490, up 0.3 per cent so far today.

Tech Mahindra, up 2 per cent, is the top gainer whereas Apollo Hospitals Enterprises, down 8 per cent, is the biggest loser in the index.

Nifty Oil & Gas, up 1 per cent, is the top performing sector so far today. 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 higher at 22,610 compared to Friday’s close of 22,556. It is currently trading at 22,600, up 0.2 per cent.

Note that Nifty futures have a support at 22,500. Until this level stays true, the overall bias will be bullish. We expect the contract to see a rally from the current level or after moderating to 22,550.

On the upside, Nifty futures have the potential to touch 22,750 in the short-term.

But if the contract falls below the support at 22,500, the downswing can extend to 22,250, a support. The price band of 22,200-22,250 is a good base. Subsequent support is at 22,000.

Trading strategy

Buy Nifty futures now at 22,600 and accumulate at 22,550. Place stop-loss at 22,480. When the contract touches 22,700, tighten the stop-loss to 22,620. Book profits at 22,750.

Supports: 22,500 and 22,250

Resistances: 22,750 and 22,950