Nifty futures (21,350)

Nifty 50 began today’s session flat at 21,454.60 versus yesterday’s close of 21,453.95. The index is now hovering around 21,375, down 0.35 per cent after the first hour of trade.

In line with the bearish inclination, the advance/decline ratio of Nifty 50 stands at 17/33. Bajaj Auto, up 2.4 per cent, is the top gainer. Tech Mahindra, down 4.1 per cent, is the top loser.

The mid- and small-cap indices look mixed. Most of the sectors are down with Nifty IT, down by 1.1 per cent, as the biggest loser. Among the few gainers, Nifty PSU Bank comes at the top by advancing 1 per cent so far today.

Nifty 50 futures

The January futures contract of Nifty 50 opened today’s session lower at 21,455 versus yesterday’s close of 21,477.60. It is now trading around 21,350, down 0.6 per cent.

The chart hints at a potential fall from the current level as Nifty futures has fallen off the resistance at 21,500.

While 21,250 is the nearest support, the contract could slip below this level and fall to 21,150.

Nifty futures should decisively breach 21,500 in order to turn the trend bullish. This appears less likely at this juncture.

Trading strategy

Short Nifty futures at the current level of 21,350 and add short if it rises to 21,400. Place stop-loss at 21,500.

When the contract falls to 21,250, tighten the stop-loss to 21,320. Book profits at 21,150.

Supports: 21,250 and 21,150

Resistances: 21,400 and 21,500