Nifty 50, the benchmark index, opened today’s session at 23,675 versus yesterday’s close of 23,689. It has now dropped to 23,550, down nearly 0.6 per cent.

The advance/decline ratio of Nifty 50 stands at 15/35, a bullish indication. Britannia Industries, up 2.6 per cent, is the top gainer whereas Larsen & Toubro (L&T), down 2.8 per cent, is the top loser.

The mid- and small-cap indices are in the red today. Most of the sectors too have been facing downward pressure. Nifty FMCG and Nifty Media, up 1.6 and 0.3 per cent respectively, are the only gainers.

Nifty Oil & Gas and Nifty Financial Services, down 1.25 and 1 per cent respectively, are the top losers.

Nifty 50 futures

The January futures of Nifty 50 began the session slightly lower at 23,759 versus yesterday’s close of 23,781. It is now trading around 23,640, down about 0.6 per cent.

The price action shows that Nifty futures exhibit a bearish bias and is likely to decline further from the current level. While 23,600 is the nearest support, we expect it to slip below this level and touch 23,000.

On the other hand, if Nifty futures recover from here, it can face resistance at 23,700 and 23,850. Resistance above the latter is at 24,000.

Trading strategy

Short Nifty futures now at 23,640 and place a stop-loss at 23,850. When the contract slips to 23,400, tighten the stop-loss to 23,520. Book profits at 23,200.

Supports: 23,600 and 23,000

Resistance: 23,700 and 23,850