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The Nifty 50 (19,450) and Sensex (65,450) are up one-third of a per cent so far today. The Indian indices are up despite the Asian market remaining mixed.
The positive bias is supported by the market breadth. For instance, the advances/ declines ratio of the Nifty 50 stands at 37/13. Also, all the mid- and small-cap indices are in the green.
All the sectors, barring Nifty Media (down by nearly 0.8 per cent), have advanced. Nifty IT and Nifty Consumer Durables are the top gainers, up by 1.4 per cent and 1.3 per cent, respectively.
Among its Asian peers, the Nikkei 225 (32,100) is down by 0.25 per cent, while the KOSPI (2,605) is up by 1.2 per cent. On the other hand, the ASX 200 (7,300) and Hang Seng (19,640) are trading flat.
Nifty 50 futures
The August futures contract of the Nifty 50 opened today’s session with a gap-up at 19,501, versus yesterday’s close of 19,468. It is now trading around 19,540. Note that this is a minor resistance. Above this level, 19,580 and 19,600 can also act as barriers.
Therefore, Nifty futures has a series of resistance. Only a decisive break of 19,600 can result in a sustainable rally.
On the other hand, the nearest support from the current level is at 19,500 and 19,400.
Trading strategy
Given that the current level is a resistance and the trend has been bearish of late, we suggest initiating fresh short positions at 19,540. Target and stop-loss can be at 19,420 and 19,580.
Supports: 19,500 and 19,400
Resistance: 19,580 and 19,600
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