Nifty 50, the domestic benchmark index, began today’s session with a gap-up at 22,799 versus yesterday’s close of 22,620. It is now hovering around 22,840, up about 1 per cent at the end of the first hour of today’s session.

Substantiating the bullish bias, the advance/decline ratio of Nifty 50 stands at 40/10. Also, all mid- and small-cap indices are in the green. Among the sectors, Nifty Realty, up 4.6 per cent, is the top gainer whereas Nifty FMCG, down 0.5 per cent, is the top loser.

Note that key Asian equity indices, too, have been positive since morning. Among the major indices, Nikkei 225 (38,740), ASX 200 (7,830), Hang Seng (18,500) and KOSPI (2,690) have advanced between 0.4 and 1 per cent.

Nifty 50 futures

The June futures of the Nifty 50 opened higher at 22,730, up nearly 1 per cent from yesterday’s close of 22,643. They are now trading at 22,890.

The chart appears bullish, and the probability of further rallying from here is high. The nearest resistance is at 23,250, followed by 23,500, a strong hurdle.

On the other hand, if Nifty futures fall from here, 22,750 and 22,600 can act as good support and prevent a fall beyond these levels.

Broadly speaking, the trend is bullish, so traders prefer to trade on the long side.

Trading strategy

Buy Nifty futures show now at 22,890 and add longs if the price falls to 22,750. Place initial stop-loss at 22,680. When the contract touches 23,250, tighten the stop-loss to 23,120. Book profits at 23,400.

Supports: 22,750 and 22,600

Resistance: 23,250 and 23,500