Nifty 50 began today’s session higher at 25,067 versus yesterday’s close of 24,982. It moved up after opening and is now at 25,125, up 0.6 per cent.
The advances/declines ratio of the benchmark index currently stands at 39/11, a bullish sign. Power Grid Corporation of India and NTPC, up 2.4 per cent each, are the top performers. Adani Enterprises, down 2 per cent, is the top loser.
Like the benchmark Nifty 50, the mid and the small cap indices have gained. In addition, most of the sectors are in the green, indicating broad-based buying. Nifty Oil & Gas, up 1.2 per cent, is the top sector, whereas Nifty Healthcare, down a little over 0.4 per cent, is the weakest.
The Asian equity market sends positive signals as major indices have appreciated so far today. Among them, Nikkei 225 (39,350), ASX 200 (8,215), Hang Seng (21,500) and KOSPI (2,610) are up between 0.15 and 4.1 per cent.
Nifty 50 futures
The October futures of the Nifty 50 began the session higher at 25,180 versus yesterday’s close of 25,084. It is now hovering around 25,240, up 0.6 per cent.
While there are signs supporting a bullish view, Nifty futures has a considerable barrier at 25,350. Only a breach of this can add sustainable momentum for the rally.
A breakout of 25,350 can take the contract to 25,500 and then possibly to 25,800.
On the other hand, if Nifty futures fall from the current level, it can find support at 25,050 and 24,900. A breach of the latter can intensify the sell-off. Support below 24,900 is at 24,650.
Trading strategy
At the moment, there is no clarity in the intraday trend. Traders with high risk appetite can go short since Nifty futures faces a resistance at 25,350.
Sell now at 25,240 with a stop-loss at 25,370. Exit at 24,900. After taking the trade, when the contract slips to 25,000, revise the stop-loss to 25,200.
Supports: 25,050 and 24,900
Resistance: 25,350 and 25,500