Nifty 50 began today’s session slightly lower at 22,099 compared to yesterday’s close of 22,122. The index is now hovering around 22,111, now almost flat for the day.

Also read: Nifty50 set for a muted start, tracking Asian peers

The advance/decline ratio of Nifty 50 shows a bearish bias as it currently stands at 22/28. Power Grid Corporation of India, up 3.1 per cent, is the top performing stock in the index. Whereas Hero MotoCorp, down 2.8 per cent, is the top loser.

Mid and small-cap indices are either flat or a few have gained a little. Among the sectors, Nifty Realty, up 1.9 per cent, has advanced the most whereas Nifty Auto, down 1 per cent, is the weakest in the early hour of trade.

Nifty 50 futures

The February futures of Nifty 50 opened today’s session lower at 22,140 as against yesterday’s close of 22,171. It is now trading around 22,140, down 0.1 per cent.

Although there is some bearish bias, note that Nifty futures has a support between 22,100 and 22,080. Until this price band holds, the likelihood of a recovery will be high.

If there is a bounce from the current level, Nifty futures can rally to 22,300, a resistance. Subsequent resistance is at 22,500.

But if the contract slips below the support at 22,080, the downswing could extend to 21,930, a support. Below this, 21,850 is another support.

Trading strategy

Stay out for now. Initiate fresh short on Nifty futures if it breaks below the support at 22,080. Target and stop-loss can be at 21,930 and 22,150 respectively.

Also read: Nifty scales fresh high amid mixed cues

But instead of a fall, if Nifty futures recover and rally past 22,175, one can consider longs with a stop-loss at 22,080. Exit this trade at 22,300.

Supports: 22,080 and 21,930

Resistance: 22,300 and 22,500

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