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Nifty 50 began today’s session with a gap-up at 21,688 versus yesterday’s close of 21,618.70. The index is now at 21,660, up 0.2 per cent.
Supporting the bullish bias, the advance/decline ratio of Nifty 50 stands at 33/17. However, the index remains within the range it has been trading for the past couple of weeks.
That said, all mid- and small-cap indices are in the green. Also, most of the sectors have advanced today, showing a broad-based buying.
Nifty Consumer durables, up 1.3 per cent, and Nifty Auto, up 1 per cent, are the top performers so far today.
Nifty 50 futures
The January futures contract of Nifty 50 opened today’s session with a gap-up at 21,758.10 versus yesterday’s close of 21,709.10. It is now hovering around 21,700.
Although there is a bullish inclination seen today, the chart shows that Nifty futures has been stuck within 21,500 and 21,825 for the past few days.
The contract should breach either 21,500 or 21,825 to establish a trend. A breakout of 21,825 can lead to a quick rally to 22,000.
On the other hand, if Nifty futures slip below 21,500, it can turn the trend bearish. Below 21,500 the contract is likely to fall to 21,300 or even to 21,000.
Trading strategy
Since Nifty futures is oscillating in a range and is now trading in the middle of the same, we suggest staying out now.
Supports: 21,500 and 21,300
Resistance: 21,825 and 22,000
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