Even though the Asian markets are trading with a bearish bias, the Indian benchmark indices began the session slightly higher. However, both the Nifty 50 (18,222) and the Sensex (61,050) gave up the gains and are now down by 0.45 and 0.4 per cent, respectively.

Among the Asian indices, the Nikkei 225 is down by 0.3 per cent and the ASX 200 is down by 0.1 per cent. Also, Hang Seng and KOSPI have lost 0.5 and 0.9 per cent, respectively.

The market breadth of the Nifty is showing a bearish inclination as the advance-decline ratio is at 11-39. Like the benchmark indices, all the mid- and small-cap indices are in the red, losing between 0.3 and 0.6 per cent. Among the very few sectoral indices that have gained, the Nifty Realty and the Nifty Bank are the top gainers, up by 0.4 per cent each. On the other hand, the Nifty Auto and the Nifty Healthcare index are the top losers, down by 1.2 per cent each.

Futures: Like the underlying Nifty, the January futures of the index began the session slightly higher at 18,354 versus yesterday’s close of 18,336. After making an intraday high of 18,363, the contract reversed lower and is now trading around 18,235. Therefore, it continues to trade within the price range of 18,160 – 18,330. Until either of these levels are decisively breached, the next leg of trend will remain unclear. So, one can stay away and wait for some clarity over the next price swing.

A breakout of 18,330 can lift the contract to 18,400 and then probably to 18,500. On the other hand, a break below 18,160 can drag the contract to 18,000. This can act as a strong support.

Strategy: Stay out as the contract remains sideways

Supports: 18,200 and 18,160

Resistances: 18,330 and 18,400