Nifty 50, the benchmark index, began today’s session with a gap-up at 24,956 versus yesterday’s close of 24,854. However, it started falling after opening and is now at 24,750, down 0.4 per cent.
The advance/decline ratio of the benchmark index currently stands at 10/40, a bearish sign. HDFC Bank, up 2.7 per cent, is the top performer. Tata Consumer is the top loser by slumping nearly 10 per cent.
Like Nifty 50, the mid and the small cap indices are in the red, indicating a broad-based selling. Nifty Financial Services, up 0.4 per cent, is the top sectoral index whereas Nifty FMCG, down 1.5 per cent, is the worst performer in the early trade today.
Nifty 50 futures
The October futures of Nifty 50 began the session at 24,975 versus yesterday’s close of 24,949. It is now hovering around 24,875, down about 0.3 per cent.
The contract has a strong intraday resistance at 25,000. Above this, the nearest barrier is at 25,300. The chart shows that the broader trend is bearish and Nifty futures ought to surpass 25,300 to change the trend positive.
We expect the contract to extend the fall from the current level. It is likely to drop to 24,700. A break below this level can drag the contract to 24,500 today.
Trading strategy
Since the likelihood of an intraday fall is high, one can short Nifty futures now at 24,875 with a stop-loss at 25,120. Exit at 24,500.
Supports: 24,700 and 24,500
Resistance: 25,000 and 25,300