Nifty 50 opened today’s session with a gap-up at 21,433.10 versus last week’s close of 21,352.60. The index gained further and is now hovering around 21,570, up 1 per cent.
The advance/decline ratio of Nifty 50 stands at 38/12. Besides, supporting the bullish inclination, mid- and small-cap indices too are in the green.
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Substantiating the positive sentiment, barring Nifty Realty (down 0.4 per cent), all other sectors are in the green. Nifty Private Bank, up 1.5 per cent, and Nifty Financial Services, up 1.4 per cent, are the top gainers.
Nifty 50 futures
The February futures contract of Nifty 50 opened today’s session higher at 21,591 versus last week’s close of 21,488. It is now trading around 21,740, up 1.2 per cent.
As the contract has rallied past the hurdle at 21,650, the likelihood for the extension of the upside is high. The nearest resistance can be seen at 21,850. Subsequent barrier is at 22,000.
On the other hand, if Nifty futures decline from the current level, there are support levels at 21,700 and 21,650, which can arrest the fall intraday. Support below 21,650 is at 21,600.
Trading strategy
Buy Nifty futures at the current level of 21,740. Add longs in case the contract sees a dip in price to 21,650. Place stop-loss at 21,580 initially.
When the contract surpasses 21,850, tighten the stop-loss to 21,780. Book profits at 22,000.
Supports: 21,700 and 21,650
Resistance: 21,850 and 22,000