Nifty 50 opened almost flat at 20,932.40 versus Wednesday’s close of 20,937.70. But it has now slid to 20,870, down 0.3 per cent at the end of the first hour of trade.

The equity market across Asia is facing downward pressure and it is weighing on the domestic market. Among the major indices, Nikkei 225 (32,860), ASX 200 (7,160) and Hang Seng (16,240) are down between 0.3 and 1.8 per cent.

Like the benchmark Nifty 50, the mid- and the small-cap indices in the local market are facing downward pressure.

Among the sectors, Nifty Auto, up 0.5 per cent, is the top gainer whereas Nifty FMCG, down nearly 1 per cent, is the top loser.

Nifty 50 futures

The December futures contract of Nifty 50 opened today’s session at 21,019.90 versus yesterday’s close of 21,039.30. It has now declined to 20,970 and thus, the contract is down 0.3 per cent.

Although the bias today is bearish so far, Nifty futures has a support at 20,950. If this level is breached, we can see the corrective decline extending to 20,820, a support. Subsequent support is at 20,700.

But if Nifty futures breaks out of the nearest barrier at 21,050, it can rally up to 21,200 today. Broadly, the next short-term swing in price depends on the direction of the breach of the 20,950-21,050 range.

Trading strategy

Even though Nifty futures show bearish bias, we suggest staying out for now as it has a support at 20,950. Initiate shorts only if the contract falls below this level. Target and stop-loss can be at 20,820 and 21,010.

Supports: 20,950 and 20,820

Resistance: 21,050 and 21,200