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Nifty 50, the Indian benchmark index, opened today’s session with a gap-up at 25,031 versus yesterday’s close of 24,951. The index has closed above the 25,000-mark at the end of the first hour of today’s session, a bullish sign.
Corroborating the positive inclination, the advance-decline ratio stands at 37:13. All mid- and small-cap indices, too, have advanced. In addition, barring Nifty Realty (down 0.5 per cent) and Nifty Media (down 0.4 per cent), all other sectors are in the green, indicating a broad-based buying.
Among the sectors, Nifty Metal, up 1.4 per cent, is the top gainer followed by Nifty Oil & Gas, up 0.8 per cent.
Nifty 50 futures
The August futures of Nifty 50 began the session higher at 25,060 compared to yesterday’s close of 25,013. It is now trading around 25,070, up 0.3 per cent.
The contract has rallied above 25,000-mark, confirming a triangular pattern, an indication of a continuing uptrend. Nevertheless, Nifty futures is likely to dip to 25,000 before the next leg of upswing.
On the upside, it can appreciate to 25,200 and then to 25,500. On the other hand, if Nifty futures slip below the price band of 24,970-25,000, it can extend the decline to 24,900, a support. Subsequent support is at 24,780.
Trading strategy
Wait for Nifty futures to dip to 25,070 and then buy with a stop-loss at 24,900. When the contract rises to 25,200 after the long trade is initiated, revise the stop-loss to 25,080. Exit at 25,400.
Supports: 25,000 and 24,970
Resistance: 25,200 and 25,500
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