Nifty 50 (19,430) and Sensex (65,400), after posting a gain of about one-fifth of a per cent on Tuesday, opened the session with a gap-up. Both indices have gained further after opening and are up 0.5 per cent after the initial hour of trade.
The positive bias is substantiated by the Asian equity indices as they are in the green. Among the major indices, Nikkei 225 (32,420), ASX 200 (7,310), Hang Seng (18,575) and KOSPI (2,565) have gained between 0.5 and 1.4 per cent.
In the domestic market, the market breadth indicates a bullish inclination. For instance, the advance/decline ratio of Nifty 50 stands at 43/7. The volatility is down – India VIX, the volatility index, is down nearly 4 per cent to 11.8. Besides, all the sectors are in the green, indicating a broad-based buying.
Nifty Auto, up 0.85 per cent, and Nifty Realty, up 0.8 per cent, are the top performing sector so far today.
Nifty 50 futures
The August futures contract of Nifty 50 opened today’s session higher at 19,410 compared to yesterday’s close of 19,337. It is currently hovering around 19,430.
The prevailing price action suggests that the probability of a rally from the current level is high. The nearest resistance levels can be seen at 19,500 and 19,570. On the other hand, the immediate support from the current level is at 19,400. Subsequent support is at 19,360.
Broadly, since the intraday bias is bullish, we expect the contract to touch 19,500 today.
Trading strategy
Buy Nifty futures at the current level of 19,430. Target and stop-loss can be at 19,390 and 19,500.
Supports: 19,400 and 19,360
Resistance: 19,500 and 19,570