Nifty 50 began today’s session with a gap-up at 25,526 versus yesterday’s close of 25,416. But the index moderated a bit and is now hovering around 25,470, up 0.2 per cent in today’s early trade.

The advance/decline ratio of the benchmark index currently stands at 35/15, a bullish indication. JSW Steel, up 3 per cent, is the top gainer whereas Cipla, down 0.9 per cent, is the top loser.

In line with Nifty 50, the mid and the small cap indices have advanced. Also, barring Nifty IT (lost 0.2 per cent) and Nifty Consumer Durables (down 0.6 per cent), all other sectors are in the green. Therefore, the buying seems to be broad-based.

Corroborating the positive sentiment, major equity indices across Asia have moved up. For instance, Nikkei 225 (37,850), ASX 200 (8,220), Hang Seng (18,270) and KOSPI (2,600) are up between 0.4 and 1.9 per cent.

Nifty 50 futures

The September futures of Nifty 50 began the session higher at 25,552 versus yesterday’s close of 25,489. It is now hovering around 25,470.

Although the trend is bullish and there are several factors that point to high probability for the ongoing uptrend to extend, Nifty futures has a resistance at 25,550.

Unless 25,550 is breached, we cannot be certain of an intraday rally. If such a breakout happens, Nifty futures can touch 25,800 quickly.

On the other hand, if the contract falls from here, it can find support at 25,450 and 25,350. For the existing uptrend to be invalidated, Nifty futures ought to decline below 25,300.

Trading strategy

Buy Nifty futures with a stop-loss at 25,400 when it breaks out of 25,550. When the contract hits 25,700, trail the stop-loss to 25,600. Book profits at 25,800.

Supports: 25,450 and 25,350

Resistance: 25,550 and 25,800

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