Nifty 50, the Indian benchmark index, opened today’s session higher at 24,292 versus yesterday’s close of 24,124. It is now hovering around 24,280, up about 0.6 per cent.
HDFC Bank and Axis Bank, up 2.9 and 2 per cent respectively, are the top gainers in the Nifty 50. On the other hand, TCS and UltraTech Cement are the top losers, depreciating 1 and 0.7 per cent, respectively.
Corroborating the bullish bias, the advances/ declines ratio of Nifty 50 stands at 38/12. The mid- and the small-cap indices have also gained.
Among the sectors, Nifty Private Bank and Nifty Auto, up 1.9 and 1.8 per cent, respectively, are the outperformers. Nifty Oil & Gas was the top loser among the few sectors that are in the red so far today.
Supporting the bullish bias, the Asian equity market, too, is positive. Among the major indices, Nikkei 225, ASX 200, Hang Seng and KOSPI have advanced between 0.2 and 1.2 per cent.
The above factors point to a potential bullish session today; the Nifty 50 and Nifty futures are set to gain more.
Nifty 50 futures
The July futures of Nifty 50 opened with a gap-up at 24,301 against yesterday’s close of 24,203. It is now trading around 24,350, up 0.6 per cent.
The chart shows that the contract has broken out of a resistance at 24,270, opening the door for a further upside. The factors discussed earlier also support the upward bias.
From here, Nifty futures can rally to 24,500 today. A breach of this can lift it to 24,750 over the next few sessions.
On the other hand, if Nifty futures slips below 24,270, it might extend the downswing to 24,150. But a fall below the latter is unlikely today.
Trading strategy
Buy Nifty futures at 24,350 now and add longs if the price dips to 24,270. Place stop-loss at 24,120. When the contract rises to 24,500, alter the stop-loss to 24,400. Book profits at 24,700.
If neither the target nor the stop-loss is triggered, traders can consider carrying this position to the next session.
Supports: 24,270 and 24,150
Resistance: 24,500 and 24,750