Nifty futures (22,050)

Nifty 50 began today’s session with a considerable gap-up at 21,812.75 compared to yesterday’s close of 21,697.45. The index moved up further and is now hovering around 21,930, up 1.1 per cent by the end of the first hour of trade.

Substantiating the bullish bias, the advance/decline ratio of Nifty 50 stands at 44/6. Adani Ports, up 5.4 per cent, is the top gainer whereas Eicher Motors, down nearly 2 per cent, is the top loser.

Adding to the bullishness, all mid- and small-cap indices as well as all the sectoral indices are in the green so far today. Among the sectors, Nifty PSU Bank, Nifty Media and Nifty Oil & Gas are the leaders by advancing 2.2 per cent each.

The price action is positive, and it indicates further rally from the current level.

Nifty 50 futures

The February futures of Nifty 50 opened today’s session higher at 21,880.20 versus yesterday’s close of 21,751.45. It is now trading around 22,050, up 1.4 per cent.

Since Nifty futures has crossed over 22,000, the intraday outlook is bullish. Given the current momentum, the contract is likely to hit 22,280. The small region between 22,280 and 22,300 can resist the bulls.

But we expect 22,300 to be breached in the upcoming days. The nearest barrier above 22,300 is at 22,500.

In case Nifty futures decline from the current level of 22,050, it will find support at 22,000. Below this, there is a strong support at 21,900. A fall below 21,900 is less likely in the near-term.

Trading strategy

Buy Nifty futures at the current level of 22,050. Add longs if the contract sees a dip to 21,950. Place stop-loss at 21,880 at first. When the contract surpasses 22,150, tighten the stop-loss to 22,080. Book profits at 22,280.

Supports: 22,000 and 21,900

Resistances: 22,300 and 22,500