Nifty 50, the Indian benchmark index, opened Friday’s session lower at 24,213 versus yesterday’s close of 24,302. It is now hovering around 24,210, down about 0.4 per cent.

ONGC and Divi’s Laboratories, up 1.8 and 1.7 per cent, respectively, are the top gainers in the Nifty 50. On the other hand, HDFC Bank and Mahindra & Mahindra are the top losers, depreciating by 3.7 and 1 per cent respectively.

The advances/ declines ratio of the Nifty 50 stands at 33/17, giving the index a positive bias, despite the gap-down open. The mid- and the small-cap indices look mixed.

Among the sectors, Nifty Pharma and Nifty Healthcare, up 0.75 per cent each, are the outperformers. Nifty Private Bank is the top loser, having fallen 1.4 per cent so far today.

Nifty 50 futures

The July futures of the Nifty 50 opened with a gap-down at 24,307 against yesterday’s close of 24,359. It is now trading around 24,250, down nearly 0.5 per cent.

The chart shows that the contract is trading near the lower end of a rising channel at 24,250. So, Nifty futures is likely to rebound from this level.

If the contract recovers, it can rally to 24,400 and then to 24,500 today. On the other hand, if the support at 24,250 is breached, Nifty futures can drop to 24,100, a support. Below this, there is a good base at 24,000.

Trading strategy

Buy Nifty futures now at 24,250 and add longs if the price dips to 24,200. Place stop-loss at 24,080. When the contract rises to 24,400, alter the stop-loss to 24,300. Book profits at 24,500.

Supports: 24,250 and 24,100

Resistance: 24,400 and 24,500

Related Topics