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Nifty 50 opened with a gap-down today at 22,386 versus yesterday’s close of 22,453. It recovered in the first hour of trade and is now hovering near yesterday’s closing level.
So far today, Shriram Finance, up 2.3 per cent, is the best performing stock in Nifty 50 whereas Nestle India, down 2.6 per cent, is the worst performer.
The advance-decline ratio of Nifty 50 stands at 23:27, giving the index a slightly bearish bias. Interestingly though, mid- and small-cap indices are in the green, unlike the benchmark.
Among the sectors, Nifty IT, up 1 per cent, is the top gainer and Nifty Realty, down 1.2 per cent, is the top loser.
Nifty 50 futures
The April futures of Nifty 50 opened today’s session lower at 22,486 compared to yesterday’s close at 22,578. It is now trading at around 22,540, down 0.15 per cent.
The contract has reclaimed 22,500 in today’s early trade after a gap-down open. This is a positive sign. However, the price action hints that 22,570 could prove a resistance.
If Nifty futures break out of 22,570, it can rally towards the nearest resistance levels at 22,650 and 22,750.
On the other hand, if bears drag the contract back below 22,500, we are likely to see a dip towards the price band of 22,350-22,400.
Trading strategy
The risk-reward ratio is unfavourable for both long and short trades. Therefore, traders can opt to stay out today.
Supports: 22,500 and 22,400
Resistance: 22,570 and 22,650
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