Nifty April futures (22,530)

The Nifty 50 began today’s session almost flat at 22,459, versus yesterday’s close of 22,462. It then dropped slightly and now hovers around 22,430, down 0.15 per cent.

BPCL, up 2.5 per cent, is the top performer on the Nifty 50. On the other hand, Hero MotoCorp, down 2.7 per cent so far today, is the top loser.

The advances/ declines ratio of the Nifty 50 stands at 20/30, giving the index a bearish bias. Unlike the benchmark, mid- and small-cap indices are in the green.

Among the sectors, Nifty consumer durables, up 1.8 per cent, is the top gainer, whereas Nifty IT, down nearly 0.5 per cent, is the top loser.

Nifty 50 futures

The April futures of the Nifty 50 opened today’s session marginally lower at 22,580, compared to yesterday’s close of 22,603. It is now trading around 22,530, down 0.3 per cent.

The price action suggests that Nifty futures is likely to decline from here. Although 22,500 is a support, it is likely to slip below this and touch 22,430 today. The price band of 22,430-22,400 is a region of support.

On the other hand, if the contract recovers, it will face considerable resistance at 22,650. A breakout of this can lift Nifty futures to 22,750.

However, note that the broader trend is bullish and so Nifty futures could see a recovery at any point in time.

Trading strategy

While there are chances that the Nifty futures will witness an intraday fall, there is support at 22,500. Since the risk appears to be higher, traders can stay away.

Traders with a higher risk appetite can short Nifty futures if it falls below 22,500 for a target of 22,430. Stop-loss can be at 22,540.

Supports: 22,500 and 22,430

Resistance: 22,650 and 22,750