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Nifty futures (22,100)
The Nifty 50 began today’s session with a gap-up at 22,020, as against yesterday’s close of 21,911. The index is now hovering around 22,025, up 0.5 per cent.
The advances/ declines ratio is at 43/7, showing a strong positive bias. All mid- and small-cap indices, too, are in the green. Also, barring Nifty FMCG, down 0.1 per cent, all the other sectors have advanced. This indicates a broad-based buying.
Nifty Auto and Nifty Media are the top performers, and they are up 2 and 1.9 per cent, respectively.
Nifty 50 futures
The February futures of Nifty 50 opened today’s session higher at 22,060, as against yesterday’s close of 22,005. It is now trading around 22,100, up 0.4 per cent.
The hourly chart of Nifty futures shows that it has surpassed resistance at 22,080 and this increases the probability of a further rally.
While 22,200 is the nearest potential resistance, we anticipate a rally to 22,280.
But if the contract slips below 22,080 from the current level, it can open the door for a downswing to 22,000 and possibly to 21,900. However, at the current juncture, the inclination is positive.
Trading strategy
Buy Nifty futures at 22,100 and place stop-loss at 22,020. When the contract rallies past 22,200, tighten the stop-loss to 22,120. Exit at 22,280.
Supports: 22,080 and 22,000
Resistance: 22,200 and 22,280
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