Nifty 50, the Indian benchmark index, opened today’s session at 24,351 versus yesterday’s close at 24,321. It is now hovering around 24,380, up 0.25 per cent in early trade.
The advance-decline ratio of Nifty 50 stands at 30:20, giving the index a bullish bias. As it stands, the mid- and small-cap indices are largely in the green, indicating broad-based buying.
Among the sectors, barring Nifty IT (down 0.1 per cent) and Nifty Oil & Gas (down 0.15 per cent), all others have advanced. Nifty PSU Bank, up 1.8 per cent, is the leader.
Nifty 50 futures
The July futures of Nifty 50 is now trading at around 24,440, up nearly 0.3 per cent.
The price action is bullish and we expect Nifty futures to surpass the resistance at 24,450 and head to 24,800 soon. Resistance above 24,800 is at 25,000.
On the other hand, if Nifty futures falls off the barrier at 24,450, it can retest the support at 24,250. A breach of this can turn the bias bearish, possibly leading to a fall to 24,100.
Trading strategy
Buy Nifty futures if it breaks out of 24,450. Target and stop-loss can be 24,800 and 24,275, respectively.
Supports: 24,250 and 24,100
Resistance: 24,450 and 24,800