Nifty 50 began today’s session with a gap-up at 25,487 versus yesterday’s close of 25,378. It advanced further after opening and is now trading at 25,500, up 0.5 per cent so far.
The advance/decline ratio stands at 31/19, giving the index a bullish bias. NTPC, up 3.2 per cent, is the top gainer whereas BPCL, down 2.3 per cent, is the top loser.
Even as the benchmark index has gained, the mid- and small-cap indices are in the red. Nifty FMCG, up 1 per cent, is the top gainer among the sectoral indices. Nifty Media, down 1.4 per cent, is the top loser.
Among the major Asian equity indices, Nikkei 225 (36,320), ASX 200 (8,190) and Hang Seng (18,000) are up between 0.5 and 2.2 per cent.
Nifty 50 futures
The September futures of Nifty 50 began the session at 25,480 versus yesterday’s close of 25,396. It is now hovering around 25,530, up 0.5 per cent so far today.
The contract surpassed 25,500-mark in early trade today, a positive sign. Also, the broader trend is bullish. Hence, Nifty futures has positioned itself to gain further from the current level.
We expect the price to touch 25,800 before the end of this week.
On the other hand, if Nifty futures fall from the current level and slip below the support at 25,500, it can extend the decline to 25,300. Support below 25,300 is at 25,200.
Trading strategy
Buy Nifty futures now at 25,520 and place stop-loss at 25,400. When the contract rises to 25,650, revise the stop-loss to 25,550. Book profits at 25,800.
Supports: 25,500 and 25,300
Resistance: 25,800 and 26,000