Nifty 50 opened with a gap-up today at 22,680 versus yesterday’s close of 22,643. It advanced after the open and after the initial hour of trade, it is hovering around 22,720, up 0.35 per cent.
The advance/decline ratio stands at 32/17, giving the index a bullish bias. Mahindra & Mahindra, up 3.8 per cent, is the top gainer in the index. Bharti Airtel, down 0.6 per cent, is the top loser.
Like the benchmark index, all mid- and small-cap indices are in the green. Most of the sectoral indices too have rallied, indicating a broad-based buying.
Nifty Auto, up 2.2 per cent, is the top gainer whereas Nifty Metal, down 0.1 per cent, is the top loser.
Nifty 50 futures
The May futures of Nifty 50 opened today’s session higher at 22,773 compared to Friday’s close of 22,750. It is currently trading at 22,800, up 0.25 per cent.
The contract is above 22,750 and the nearest resistance from here is 22,950. Since the trend is up, Nifty futures will most likely hit 22,950 today. If this is breached, the contract can rally to 23,200 in about a week.
On the other hand, if Nifty futures slip below the support at 22,750, it may extend the downswing to 22,600, a support. Subsequent support is at 22,500.
Trading strategy
Buy Nifty futures now at 22,800 and accumulate at 22,750. Place stop-loss at 22,680. When the contract touches 22,900, tighten the stop-loss to 22,800. Book profits at 22,950.
Supports: 22,750 and 22,600
Resistances: 22,950 and 23,200