Nifty 50, the benchmark index, opened today’s session higher at 23,680 versus yesterday’s close of 23,616. After marking a high of 23,795, it is now hovering around 23,670, up nearly 0.3 per cent.

The advance/decline ratio of Nifty 50 stands at 36/14, a bullish indication. ONGC, up 3.4 per cent, is the top gainer whereas TCS, down 1 per cent, is the top loser.

The mid- and small-cap indices have advanced in the early trade today. Also, most of the sectors are in the green.

Nifty Oil & Gas is the best performing sector today by advancing 1.6 per cent whereas Nifty Media, down 0.6 per cent, is the top loser.

Nifty 50 futures

The January futures of Nifty 50 began the session with a gap-up at 23,800 versus yesterday’s close of 23,721. It is now trading around 23,770, up about 0.3 per cent.

The rally does not seem to sustain as Nifty futures, after marking a high of 23,890 early today, has fallen to 23,770, meaning traders are creating fresh shorts as the contract moves higher. 

For Nifty futures to see a sustainable rally, the bulls have to lift it above the nearest notable resistance at 24,000. Until then, one should be cautious about the upswing.

If 24,000 is taken out, Nifty futures can move up to 24,250 and 24,350 quickly.

But if the contract declines further and slips below 23,700, it can see another downswing, probably to 23,500. The fall might extend to 23,000.

Broadly, the contract should breach the nearest support or resistance for us to be certain about the next leg of trend. Since it saw a sharp fall yesterday, there is also a possibility for consolidation through today’s session.

Trading strategy

Stay out for now. Go short with a stop-loss at 23,820 if Nifty futures breaks below 23,700. Book profits at 23,500.

Supports: 23,700 and 23,500

Resistance: 24,000 and 24,250