Nifty 50 began today’s session with a gap-up at 22,164 as against yesterday’s close of 22,124. It extended the gains and is now hovering around 22,260, up 0.6 per cent.

Supporting the bullish bias, the advance/decline ratio of Nifty 50 stands at 37/13. Bajaj Finserv, up 2.7 per cent, is the top gainer whereas Apollo Hospitals, down 0.8 per cent, is the top loser.

Like the benchmark index, the mid- and the small-cap indices too are in the green. So do the sectoral indices.

Among the sectors, Nifty PSU Bank and Nifty Financial Services, up 1.5 and 1 per cent respectively, are the leaders.

The chart of Nifty 50 shows a bullish bias, and we expect it to advance further, for intraday as well as over the next few sessions.

Nifty 50 futures

We are considering April futures for analysis since March contracts expire today.

The April futures of Nifty 50 opened today’s session almost flat at 22,340 versus yesterday’s closing price of 22,332. It rallied post the open and is now at 22,470, up 0.6 per cent.

Notably, the contract has risen past a key resistance at 22,375. Coincidentally, this price point is the neckline of an inverted Head & Shoulder (H&S) pattern. So, the odds for a rally have increased considerably.

The nearest resistance is 22,570. However, the inverted H&S pattern hints at a rally to 22,750.

In case there is a fall from the current level, Nifty futures can find support between 22,400 and 22,375. Only a decline below 22,300 will turn the trend bearish.

Trading strategy

Buy Nifty futures at the current level of 22,470. Add longs if the price dips to 22,400. Place initial stop-loss at 22,280.

When the contract rises to 22,570, tighten the stop-loss to 22,420. Raise the stop-loss further to 22,550 when the price touches 22,680. Book profits at 22,750.

Supports: 22,375 and 22,300

Resistance: 22,570 and 22,750