The Indian benchmark indices – the Nifty 50 (17,425) and the Sensex (59,410) – are up by about 0.2 per cent so far today. The mid-and small-cap indices too are in the green, gaining between 0.3 per cent and 0.7 per cent.

Among the sectors, Nifty Media, up by 2.5 per cent, is the top gainer whereas Nifty Oil & Gas is the top loser as it has lost 0.7 per cent.

Nevertheless, the overall bias seems to be bullish for the day. Supporting this, major indices in Asia are up. Among them, Nikkei 225 (27,475), ASX 200 (7,260), Hang Seng (20,045) and KOSPI (2,424) have gained between 0.2 and 0.9 per cent.

Nifty 50 futures

The March futures of the Nifty 50 index opened almost flat at 17,493 versus 17,498. It is now hovering around 17,490 after initially rallying to mark an intraday high of 17,534.

Since the overall trend is bearish and that the contract has resistances at 17,550 and 17,600, the rally is likely to be capped if there is one.

Broadly, the contract might see a corrective rally to 17,550 or to 17,600 and then resume the downtrend.

From the current level of 17,490, the nearest support is at 17,400. Subsequent support is at 17,300.

Notably, the underlying Nifty 50 has its 200-day moving average support at 17,385. The Nifty futures’ equivalent level is 17,475.

Trading strategy

Since the overall bias is bearish one can consider going short on Nifty futures. But since the underlying index has support, wait for now and initiate fresh short once the Nifty futures fall below 17,475. Place stop-loss at 17,560. Exit at 17,320.

Supports: 17,400 and 17,300

Resistance: 17,550 and 17,600

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