Nifty 50 opened today’s session lower at 22,709 versus Monday’s close of 22,753. It is now trading at 22,730, down by a marginal 0.1 per cent.
The advance/decline ratio of Nifty 50 now stands at 26/24. Tata Consumer Products (up 5.7 per cent) and Bharat Electronics Limited (BEL) (up 3 per cent) are the top performers.
On the other hand, Infosys (down 2.5 per cent) and Hindustan Unilever (down 2.1 per cent) are the weakest among the Nifty 50 constituents.
Among the sectors, Nifty Media and Nifty Pharma, up 1.5 per cent each, top the chart. Whereas Nifty IT, down 1.4 per cent, and Nifty Cement, down 1.1 per cent, are the biggest losers so far today.
Overall, there is a bullish bias but there is a resistance nearby for Nifty 50 and Nifty futures. A breakout of this would add strength to the bulls.
Nifty 50 futures
Nifty (November) futures began today’s session at 22,830 versus yesterday’s close of 22,891. It is now trading at 22,860, down 0.1 per cent.
The chart shows that there is a resistance at 22,900. A breakout of this will open the door for a rally to 23,100. The upswing might extend to 23,300, a notable barrier.
However, if the November futures falls off the resistance at 22,900, it can find support at 22,750 and 22,700. A breakdown below 22,700 can turn the outlook weak, possibly dragging the contract lower to 22,550, a support.
Broadly, the bulls seem to be gaining good strength and the probability for the breakout of 22,900 is high at the moment. Therefore, traders can consider longs post the breakout.
Trading strategy
Buy Nifty (November) futures on a breakout of 22,900. Place stop-loss at 22,700. When the contract rises to 23,100, revise the stop-loss to 23,980. Book profits at 23,300.
Supports: 22,750 and 22,700
Resistance: 22,900 and 23,100
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