Nifty 50, the benchmark index, opened today’s session higher at 23,412 versus yesterday’s close of 23,350. The index gained further and is now at 23,585, up 1 per cent by the end of the first hour of today’s trade.
The advance/decline ratio of Nifty 50 stands at 47/3, a strong positive indication. Apollo Hospitals and ICICI Bank, up 2.5 and 2.2 per cent respectively, are the top performers so far whereas Adani Enterprises, down 3.6 per cent, is the top loser.
Like the benchmark index, all mid and small cap indices are in the green. Moreover, barring Nifty Media (down 0.2 per cent), all other sectors have advanced. Nifty Realty and Nifty PSU Bank, up 2.3 per cent and 2.1 per cent respectively, are the top gainers.
Nifty 50 futures
The November futures of Nifty 50 began the session with a gap-up at 23,425 versus yesterday’s close of 23,349. It is now hovering around 23,610, up 1.1 per cent.
The contract seems to have found support at 23,320 yesterday. Following this, a bounce today is a positive sign.
However, traders should be wary that the broader trend remains bearish and there are resistance levels ahead, at 23,670 and 23,830. A breakout of 23,830 can lift the Nifty futures to 24,150.
On the other hand, if the contract falls from the current level, it can find support at 23,450 and 23,320. Note that a breach of 23,450 can cancel out the intraday bullish bias.
Trading strategy
Since there are hurdles ahead, risk averse traders can refrain from creating new positions. Others can buy Nifty futures if it dips to 23,520. Target and stop-loss can be 23,830 and 23,400 respectively.
As a risk management measure, when Nifty futures rises past 23,670 after you go long, revise the stop-loss to 23,500.
Supports: 23,450 and 23,320
Resistances: 23,670 and 23,830