Nifty 50, the domestic benchmark index, began today’s session with a minor gap-down at 22,931 versus yesterday’s close of 22,968. It is currently hovering around 22,940, down 0.1 per cent at the end of the first hour of today’s session.
Substantiating the bearish bias, the advance/decline ratio of Nifty 50 stands at 20/30. Also, most of the sectoral indices are in the red led by Nifty FMCG and Nifty Realty, down 0.6 per cent each. Nifty Metal, up 0.8 per cent, tops the list among the gainers.
Note that key Asian equity indices have been facing downward pressure since morning and this could weigh on the domestic indices as well. Among the major indices, Nikkei 225 (38,700), ASX 200 (7,730), Hang Seng (18,660) and KOSPI (2,690) have lost over 1 per cent each.
Nifty 50 futures
The May futures of Nifty 50 opened flat at 23,000 as against yesterday’s close of 23,003. It is now trading at 22,970, down 0.15 per cent.
Although the trend is bullish, Nifty futures faces a resistance at 23,040. A breakout of this hurdle can result in the contract rising to 23,200 and then to 23,300.
On the other hand, if the weak equity market sentiment across Asia weighs on Nifty futures leading to a fall below 22,950, the contract can extend the downswing to 22,850, a support. Subsequent support is at 22,750.
Trading strategy
Stay out for now and initiate trade along the direction of the break of the 22,950-23,040 range.
Supports: 22,950 and 22,850
Resistances: 23,040 and 23,200