The Nifty 50 (19,770) and Sensex (66,815) are in the green today, despite the Asian equity market facing downward pressure. Both the Indian benchmark indices are up one-third of a per cent post the initial hour of trade.
Among the Asian majors, ASX 200 (7,280), Hang Seng (18,990) and KOSPI (2,610) are down between 0.3 and 2.2 per cent.
Moreover, most of the mid- and small-cap indices have gained. Among the sectors, Nifty Bank, up by 0.7 per cent, is the top gainer, whereas Nifty Media, down by 1.1 per cent, is the top loser.
Nifty 50 futures
The Nifty 50 July futures contract opened today’s session higher at 19,756 versus yesterday’s close of 19,721. The contract is currently trading around 19,775.
The trend is bullish and the likelihood of a rally is high. That said, 19,800 can be a resistance . If this level is breached, it can touch 19,900 today. Subsequent resistance is at 20,000.
On the other hand, immediate support is at 19,750. A breach of this level can drag the contract to 19,700. Subsequent support is at 19,650.
Trading strategy
The trend is bullish, but there is a barrier at 19,800. Buy Nifty futures if it rallies past 19,800, and place stop-loss at 19,750. Book profits at 19,900.
This is an intra-day trade recommendation and, hence, exit the trade just before the end of the day, if neither target nor stop-loss level is hit.
Supports: 19,750 and 19,700
Resistance: 19,800 and 19,900