Nifty 50 began today’s session with a gap-up at 24,649 versus yesterday’s close of 24,573. After opening, the index advanced further and is currently at 24,680, up about 0.4 per cent in the early trade.
The breadth of Nifty 50 shows that 40 out of 50 stocks in the index have advanced, led by BPCL and SBI Life Insurance, up 2.2 and 1.7 per cent, respectively. On the other hand, ONGC and Bharti Airtel are the top losers, down 1.6 and 1 per cent, respectively.
All mid- and small-cap indices are in the green. Among the sectors, barring Nifty Media, down nearly 0.3 per cent, is the only index that is down so far today. Nifty IT and Nifty PSU Bank, up 0.9 and 0.7 per cent, respectively, are the top performing sectors.
The Asian equity market is giving positive bias as major indices like Nikkei 225 (38,170), ASX 200 (7,990) and KOSPI (2,690) are up between 0.2 and 2.2 per cent.
Nifty 50 futures
The August futures of Nifty 50 opened at 24,640 today versus yesterday’s close of 24,596. It is currently hovering around 24,740, up 0.6 per cent.
The outlook is bullish and the contract is likely to touch 25,000 over the next few sessions. A breakout of 25,000 can lift it to 25,200.
On the other hand, in case Nifty futures decline from the current level of 24,740, it can find support at 24,675 and 24,600. A fall below the latter is less likely.
Nevertheless, the bias is positive and the probability of a rally is high.
Trading strategy
Buy Nifty futures now at 24,740 and accumulate if the price dips to 24,675. Place stop-loss at 24,600. Exit at 25,000.
A move up to 25,000 can happen over the next few sessions. So, traders can carry this position tomorrow if neither target nor stop-loss is hit before the end of today’s session.
Supports: 24,675 and 24,600
Resistance: 25,000 and 25,200