Nifty 50 July Futures (19,812)

Nifty 50 and Sensex are trading higher but have given back some of their early gains. Sensex is trading at 66,781, up 0.12 per cent and Nifty at 19,812 is up 0.17 per cent.

Nifty has come down from the day’s high of 19,867. It is important for it to sustain above 19,800 and rise past 19,840. Only in that case, a rise to 19,900 and 20,000 can happen.

A fall below 19,800 can drag the Nifty 50 down to 19,750 during the day.

Global indices

All Asian major indices are all in green. Hang Seng (19,629), up 1.36 per cent is the outperformer.

In the US, the Dow Jones Industrial Average (35,520) continues to move up. It has a key resistance at 35,600. A strong break above this can take the index up to 36,000 in a week or two.

A no surprise from the US Federal Reserve during its Wednesday meeting is keeping up the risk-appetite high in the market. That in turn is supporting the equity markets to move higher. The US Fed raised interest rates by 25 basis points in line with market expectations. The US Fed fund rate now stands at 5.25-5.5 per cent.

Nifty 50 Futures

The Nifty 50 July Futures (19,812) is up 0.20 per cent. The contract has a key intraday support at 19,770. A bounce from there can take the contract up to 19,870-19,900 during the day. That will also keep the chances high of the contract touching 20,000 in the coming sessions.

In case a break below 19,770 is seen, then a fall to 19,700 is possible. As such the price action around 19,770 will need a close watch today.

Trade Strategy

Traders with a high-risk appetite can go long on dips at 19,780. Keep the stop-loss at 19,740. Trail the stop-loss up to 19,795 as soon as the contract moves up to 19,810. Move the stop-loss further up to 19,820 when the contract touches 19,840. Exit the long positions at 19,860.

Supports: 19,770, 19,700

Resistances: 19,870, 19,900

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