Nifty Prediction Today—March 20, 2024: Bears gain traction; consider shorts

Nifty futures (21,850)

Nifty futures (21,850)

Nifty 50 began today’s session higher at 21,844 versus yesterday’s close of 21,817. After marking a high of 21,891.70, the index made a U-turn. It is now hovering around 21,750, down 0.3 per cent by the end of the first hour of trade.

The advance/decline ratio of Nifty 50 stands at 15/35, giving the index a bearish inclination. Eicher Motors, up 4.4 per cent, is the top gainer, while Tata Steel, down 3 per cent, is the top loser.

Like the benchmark index, the mid- and the small-cap indices are in the red. In addition, all the sectoral indices have declined so far.

Nifty Metal and Nifty Media, down 1.6 and 1.2 per cent, respectively, are the worst performing sectoral indices.

Nifty 50 futuresThe March futures of Nifty 50 opened today’s session higher at 21,900 as against yesterday’s close of 21,887. It declined after registering an intraday high of 21,963 in the first hour of trade. It is now trading at around 21,850, down 0.2 per cent.

As Nifty futures closed below the support at 22,000 on Tuesday, the likelihood of further fall is high. The nearest support can be spotted at 21,750. Subsequent support is at 21,500.

If the contract recovers from here, it can face resistance at 22,000. Only if this level is reclaimed, the trend will turn bullish.

Trading strategyShort Nifty futures now at 21,850 and on a rally to 21,900. Place stop-loss at 21,970. Tighten the stop-loss to 21,850 when the contract slips to 21,750. Book profits at 21,550.

Supports: 21,750 and 21,500

Resistances: 22,000 and 22,130

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