Nifty 50 continues to move up. The index is currently trading at 22,958, up 0.6 per cent. The advances/declines ratio is at 35:15. This is positive. If this sustains, more rise can be seen during the day.
Nifty 50 Outlook
Intraday support is in the 22,900-22,850 region. As long as the Nifty stays above this support zone, the outlook is positive. A rise to 23,000-23,100 is possible then.
The above-mentioned rise will get negated only if the Nifty breaks below 22,850. Such a break can take the index down to 22,750 and even 22,650 in the coming sessions.
Global Indices
In Asia, Kospi (2,715) is up about a per cent. Other major indices are in red. Nikkei 225 (38,611), Hang Seng (18,399) and Shanghai Composite (3,041) are all down in the range of 0.2-04 per cent.
- Also read: Stock market today: Sensex, Nifty open higher, IT stocks lead gains; FIIs continue to sell
The Dow Jones Industrial Average (38,886, up 0.2 per cent) has moved up very well this week. A break above 39,000 can boost the bullish momentum. It can then clear the way for the Dow Jones to target 40,000 on the upside.
Failure to breach 39,000 and a reversal thereafter can drag it down to 38,000. As such the price action around 39,000 will need a close watch.
Nifty 50 Futures
The Nifty 50 June Futures (23,010) is up 0.47 per cent. Support is in the 22,900-22,850 region. The outlook is bullish. The Nifty 50 June Futures contract can rise to 23,200 in the coming sessions.
The contract has to fall below 22,850 to come under pressure and decline towards 22,750 and lower.
Trade Strategy
Traders can go long now at 23,010. Accumulate on dips at 22,930. Keep the stop-loss at 22,870. Trail the stop-loss up to 23,040 as soon as the contract moves up to 23,065. Move the stop-loss further upto 23,085 when the contract touches 23,105. Exit the long positions at 23,130.
Supports: 22,900, 22,850
Resistances: 23,100, 23,200