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Nifty 50 July Futures (19,834)
Nifty 50 and Sensex continue to rally. Both the indices are up about 0.4 per cent each today. Sensex is trading at 67,063 and Nifty at 19,827.
Nifty has resistance at current levels. A strong follow-through rise from here is needed to move further up to 19,900-20,000 levels. A pull-back from here and a fall below 19,800 can take it down to 19,750 or 19,700 during the day. It is a wait-and-watch situation.
Global indices
In Asia, barring Nikkei 225 (32,770, up 0.85 per cent), other major indices are in red. Hang Seng (18,782) is down over a per cent. Shanghai Composite (3,189) and Kospi (2,601) are down 0.25 per cent each.
In the US, the Dow Jones Industrial Average (34,951.93) surged over a per cent on Tuesday. The index has broken its 33,600-34,600 range on the upside in line with expectations. The outlook is bullish. The Dow Jones can rise to 35,500 in the coming days.
Nifty 50 Futures
The Nifty 50 July Futures (19,834) is up 0.32 per cent. Similar to the underlying index, the July Futures contract of Nifty also has a resistance at current levels. Inability to move further up from here can drag the contract down to 19,750. A fall below 19,750 is less likely as it can provide strong support for the contract.
A sustained rise above 19,840 can take the contract up to 20,000 in the coming sessions.
Trade Strategy
Traders can wait for dips and go long at 19,780 and 19,760. Keep the stop-loss at 19,730. Trail the stop-loss up to 19,805 as soon as the contract moves up to 19,830. Move the stop-loss further up to 19,835 when the contract touches 19,855. Exit the longs at 19,875.
Supports: 19,800, 19,750
Resistances: 19,840, 20,000
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