Nifty futures (21,850)

The Nifty 50 began today’s session lower at 21,775.75 versus yesterday’s close of 21,737.60. The index is now trading around 21,715, down 0.15 per cent.

At the moment, the advances/ declines ratio stands at 33/17. Hindustan Unilever, up 1.9 per cent, is the top gainer, whereas Bajaj Finance, down 3.6 per cent, is the biggest loser in the Nifty 50 in the first hour of trade.

While the market breadth indicates a positive bias, mid- and small-cap indices, too, are trading in the green, supporting the bullishness.

In addition, most of the sectors have advanced. Nifty Media, up 1.4 per cent, is the best performing sectoral index, whereas Nifty Financial Services, down 0.5 per cent, is the weakest.

Overall, the bias remains bullish and even though there could be a minor correction, Nifty and Nifty futures are expected to recover.

Nifty 50 futures

Despite the underlying Nifty 50 opening with a gap-down, the February futures contract of the index opened today’s session higher at 21,900.20, as against yesterday’s close of 21,855.25. It is currently trading at 21,850.

The contract is expected to rally from the current level or after dipping to 21,770. Such an upswing can take the Nifty futures to 22,000, a resistance. There could be profit-booking at this level, possibly leading to a decline in price.

The intraday outlook will turn bearish if Nifty futures slip below 21,700. A breach of 21,700 can result in a fall to 21,600.

Trading strategy

Buy Nifty futures at the current level of 21,850. Add longs in case the contract dips to 21,770. Place stop-loss at 21,680 initially.

When the contract surpasses 21,950, tighten the stop-loss to 21,880. Book profits at 22,000.

Supports: 21,770 and 21,700

Resistance: 22,000 and 22,200