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The Indian benchmark indices – Nifty 50 (17,000) and Sensex (57,700) – have commenced the week slightly on the higher side. Both the indices opened with a gap-up and are now trading up by about 0.3 per cent each.
This is despite the major Asian equity indices sending out mixed signals. Among the majors, Nikkei 225 (27,515) and ASX 200 (6,960) are up 0.5 and 0.1 per cent whereas Hang Seng (19,810) and KOSPI (2,410) have lost 0.7 and 0.2 per cent, respectively.
Coming back to the domestic market, the bullish inclination is supported by the breadth of Nifty 50 index i.e., the advance-decline ratio stands at 38-12.
However, the mid- and small-cap indices are facing downward pressure and they are in the red. Looking at the sectors, Nifty Healthcare index is the top gainer, up by 1.3 per cent. On the other hand, Nifty Media is down by 1.1 per cent.
Read also: Stocks that will see action on March 27, 2023
Nifty 50 futures
The March futures of the Nifty 50 index opened with a gap-up at 16,995 against last week’s close of 16,955. Post-open, it moved up further and is now hovering around the psychological level of 17,000.
The price action since the last two weeks show that the contract is largely oscillating in the 16,900–17,200 range. Since the contract now seems to be bouncing off the lower boundary of the price band, we might see a rally from here, possibly to 17,200. Resistance above this level is at 17,270.
If Nifty futures drop from the current level, it can find support at 16,900. But a breach of this level can drag the contract quickly to 16,800.
Trading strategy
As there is no clear indication of the intraday trend, traders can stay out of the market for now.
Yet, traders with high-risk appetite can initiate fresh longs at the current level of 17,000. Place the stop-loss at 16,920. Book profits at 17,200.
Note that the above trade recommendation is for intraday. So, exit the positions by the end of the day if neither target nor stop-loss is triggered.
Supports: 16,880 and 16,800
Resistance: 17,200 and 17,270
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