Nifty 50 July futures (19,391)
The Nifty 50 and Sensex continue to retain their momentum and have begun the week on a strong note. Both the indices are up about 0.7 per cent each. The Sensex is trading at 65,176, and Nifty at 19,316.
Our view of seeing a correction from the 19,000-19,100 region on the Nifty mentioned on Friday last week, has gone now. The outlook remains bullish. Strong support now will be around 19,200. We can expect Nifty to rise towards 19,500-19,700 this week.
Global indices
The Asian markets are trading strong. All major indices are up over a per cent. In the US, the Dow Jones Industrial Average (34,407,60) rose sharply on Friday. Immediate resistance for the index is at 34,500. A break above it can take the Dow Jones up to 35,000 and 35,500 in the short-term.
Nifty 50 futures
The Nifty 50 July Futures (19,391) is up 0.68 per cent. The contract has surged, breaking above the key resistance at 19,300. This level (19,300) can now act as a good intraday support and limit the downside. The next strong resistance is visible at 19,800-19,900. So, the contract can surge to test this resistance this week.
An important support is at 19,250. The contract will come under pressure only if it falls below this support. In that case, a test of 19,100-19,000 is possible. But that looks less likely.
Trade Strategy
Traders can wait for dips and go long at 19,340 and 19,320. Keep the stop-loss at 19,290. Trail the stop-loss up to 19,350 when the contract moves up to 19,370. Move the stop-loss further up to 19,375 when the contract touches 19,390. Exit the longs at 19,415.
Supports: 19,300, 19,250
Resistances: 19,400,19,500