Nifty50 opened with a gap-up today at 22,212 versus yesterday’s close of 22,148. After initial gains, the index has moderated to around 22,180, up 0.15 per cent.
The advance/decline ratio stands at 33/17, giving the index a bullish bias. Power Grid Corporation of India, up 3.9 per cent, is the top gainer whereas Nestle India, down 1.8 per cent, is the top loser.
Nifty Media, up 1.7 per cent, is the top performing sector whereas Nifty FMCG, down 0.4 per cent, is the top loser.
Nifty 50 futures
The April futures of Nifty 50 opened today’s session higher at 22,230 compared to yesterday’s close of 22,200. It softened after a gap-up open and is now trading around yesterday’s closing level.
The contract has a strong support at 22,200. If there is a bounce off this level, Nifty futures can rally to 22,350, a resistance. Subsequent resistance is at 22,500.
On the other hand, if Nifty futures slip below 22,200, it can extend the downswing to 22,000, a considerable base. A fall below this level is less likely.
Trading strategy
Although Nifty futures is trading near a support, it does not guarantee a rally. Traders can stay on the fence and initiate fresh longs if the contract moves above 22,250. Target and stop-loss for intraday can be 22,350 and 22,200 respectively.
Supports: 22,200 and 22,000
Resistances: 22,350 and 22,500