Nifty 50 (19,630) and Sensex (66,280) have opened the week on the front foot. This is despite the bearish bias exhibited by the Asian equity indices. While ASX 200 (7,300) is flat, Hang Seng (19,210), and KOSPI (2,615) are down 1 and 0.4 per cent, respectively.
Factors supporting the positive bias in the domestic market are the advance/decline ratio of Nifty 50, which stands at 38/12 and the mid- and small-cap indices, which are in the green.
Among the sectors, Nifty Media is the top gainer, up by 2.4 per cent. On the other hand, Nifty Realty is the top loser, down by 0.25 per cent.
Broadly, the sentiment is positive in the local market and thus, Nifty 50 and its futures are expected to go up further today from the current level.
Also read: Index Outlook: Nifty50, Sensex likely to continue uptrend
Nifty 50 futures
The July futures contract of Nifty 50 opened today’s session higher at 19,622 versus Friday’s close of 19,599. It is currently hovering around 19,640.
While there is a chance for the contract to see a corrective dip to 19,615, it is expected to resume the rally and move towards 19,700. A breach of this level can lift Nifty futures to 19,750.
On the other hand, if the contract falls below 19,615, it can decline to 19,580. A fall below 19,580 is less likely to happen today.
Trading strategy
Go long on Nifty futures now at 19,640. Add more longs if the price dips to 19,615. Place stop-loss at 19,580.
When the contract touches 19,700, revise the stop-loss to 19,650. Further tighten the stop-loss to 19,680 when Nifty futures touch 19,725. Book profits at 19,750.
Supports: 19,615 and 19,580
Resistance: 19,700 and 19,750