Nifty 50 June Futures (18,745)

Nifty 50 and Sensex are trading higher. The benchmark indices opened with a gap-up and are up about 0.2 per cent. Nifty is trading at 18,730 and Sensex at 63,105. It is important to see if they can continue to hold higher all through the day or not.

Nifty is coming down from its intraday high of 18,763. Key intraday support is at 18,700. A bounce from there will be bullish. Such a bounce can see the Nifty rising towards 18,800 and higher in the coming sessions.

On the other hand, a break below 18,700 will increase the downside pressure. Such a break can drag the index down to 18,650-18,600.

Global indices

Asian markets are mixed. Nikkei 225 (34,216) and Kospi (2,576) are down 0.9 and 0.2 per cent, respectively. Hang Seng (19,086) and Shanghai Composite (3,179) are up 1.5 and 0.9 per cent, respectively.

In the US, the Dow Jones Industrial Average (33,714) closed on a flat note yesterday. It looks vulnerable to test 33,500 on the downside first before witnessing a fresh rise.

Nifty 50 Futures

The Nifty 50 June Futures (18,745) is up 0.15 per cent. The contract has support near current levels in the 18,730-18,720 region. It has to sustain above this support to retain the bullish bias. A bounce from this support zone and a subsequent rise past 18,750 can take the contract up to 18,800 during the day and even higher.

The contract will come under pressure if it breaks below 18,720. Such a break can take it down to 18,670.

Trade Strategy

Traders can go long now and accumulate at 18,735. Keep the stop-loss at 18,710. Trail the stop-loss up to 18,755 as soon as the contract moves up to 18,770. Move the stop-loss further up to 18,775 when the contract touches 18,790. Exit the long positions at 18,800.

Supports: 18,720, 18,670

Resistances: 18,750, 18,800

Related Topics