Nifty 50, the benchmark index, opened today’s session with a considerable gap-down at 23,195 versus Friday’s close of 23,432. The index is currently trading at 23,220, down 0.9 per cent.

The advance/decline ratio of Nifty 50 now stands at 7/43, a strong bearish indication. IndusInd Bank, up 2.7 per cent, is the top gainer. Apollo Hospitals Enterprises, down 2.9 per cent, is the top loser.

The mid- and small-cap indices are in the red today, in line with the benchmark. In addition, all sectors are down in the early trade today, affirming the bearish bias.

Nifty Realty and Nifty Metal, down 2.8 per cent and 1.3 per cent, are the top losers.

The bearishness is further substantiated by the considerable sell-off across the Asian equity market since morning. Major indices like ASX 200 (8,190), Hang Seng (18,800) and KOSPI (2,490) have lost between 1.1 per cent and 1.4 per cent so far today.

The above factors indicate that Nifty 50 and its futures are likely to see further fall from the current level for the rest of today’s session.

Nifty 50 futures

The January futures of Nifty 50 began the session lower at 23,400 versus last week’s close of 23,501. It is now trading around 23,280, down about 1 per cent.

The price action is bearish and hints at further fall. Nifty futures might fall to 23,000-22,900 price band in the near-term. A breach of 22,900 can open the door for a fall to 22,500.

But in case the contract recovers from the current level of 23,280, it might not rally past 23,350, which can act as an intraday resistance. A breakout of 23,350 can lift it to 23,500.

Broadly, given the current conditions, the probability of a fall is high.

Trading strategy

Short Nifty futures now at 23,280 and also on a rise to 23,350. Place a stop-loss at 23,420. When the contract slips to 23,150, tighten the stop-loss to 23,280. Book profits at 23,000.

Supports: 23,000 and 22,900

Resistance: 23,350 and 23,500