The Indian benchmark indices – the Nifty 50 (17,060) and the Sensex (57,850) – are up by about 0.5 per cent each today. Both indices bounced off a crucial support yesterday and the upside is likely to be extended further.
The advance/decline ratio of Nifty 50 stands at 38/12 and all the mid- and small-cap indices have appreciated today. Among the sectors, barring Nifty Media (down by 1.3 per cent) and Nifty FMCG (down by 0.3 per cent), all others are in the green. Nifty Realty is the top gained, up by 1.9 per cent.
Also read: Day Trading Guide for March 17, 2023
In addition, the Asian indices too have advanced, giving positive cues to the domestic market. Among the majors, Nikkei 225 (27,320), ASX 200 (6,990), Hang Seng (19,550) and KOSPI (2,395) have gained between 0.4 and 1.8 per cent today.
Therefore, we might see a rally today in the domestic market.
Nifty 50 futures
The March futures of the Nifty 50 index opened the session higher at 17,165 against yesterday’s close of 17,047. It has softened a bit and is now trading at 17,120.
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The contract has support at 17,100 and 17,000. We expect a rebound on the back of the support at 17,100. On the upside, resistance levels are at 17,260 and 17,350.
Trading strategy
One can buy Nifty futures at the current level of 17,120. Place stop-loss at 17,000. When the contract touches 17,260, tighten the stop-loss to 17,180. Liquidate the longs at 17,350.
Note that the above trade recommendation is for intraday. So, exit the positions by the end of the day if either target or stop-loss levels are not hit.
Supports: 17,100 and 17,000
Resistance: 17,260 and 17,350