Nifty 50 commenced today’s session with a gap-up at 24,863 against yesterday’s close of 24,770. The index moderated a little and is currently at 24,815, up 0.15 per cent so far today.
Substantiating the positive leaning, the advance/decline ratio of Nifty 50 stands at 36/14. Grasim Industries is the top performer in the index by appreciating 2.4 per cent. On the other hand, Power Grid Corporation, down 1.5 per cent, is the top loser.
The mid- and small-cap indices are in the green and most of the sectors have gained so far today, indicating a broader bullish bias today. Nifty Consumer Durables is the top sector today by gaining about 0.6 per cent. Nifty Realty, down 0.5 per cent, is the weakest.
The Asian equity market is showing a bullish bias. Nikkei 225 (37,970), ASX 200 (8,030) and Hang Seng (17,330) are up between 0.2 and 0.4 per cent.
Nifty 50 futures
The August futures of Nifty 50 opened today’s session at 24,850 versus yesterday’s close of 24,798. It is currently hovering around 24,825, up 0.1 per cent.
The contract has a minor hurdle at 24,860. So, there might be a minor correction, possibly to 24,750, from the current level of 24,825. Below 24,750 is another support at 24,700.
We expect Nifty futures to rally either from the current level or after a dip. Eventually, the contract is expected to surpass 24,860 and touch 25,000. There might be a correction after the contract touches 25,000.
On the other hand, if Nifty futures slip below 24,700, the intraday outlook can turn weak. Support levels below 24,700 are at 24,620 and 24,550.
Trading strategy
Buy Nifty futures at 24,825 and accumulate at 24,750. Place stop-loss at 24,680. Book profits at 25,000.
Traders who are holding the longs we recommended at 24,740 yesterday can retain the trade. But revise the stop-loss up from 24,600 to 24,680. Exit at 25,000.
Supports: 24,750 and 24,700
Resistances: 25,000 and 25,200