Nifty 50 (19,465) and Sensex (65,725) opened today’s session with a gap-up, tracking positive cues from the global markets. Both indices have gained nearly 0.3 per cent each in early trade.
Among the Asian majors, ASX 200 (7,300), Hang Seng (19,435) and KOSPI (2,620) are up between 0.4 and 1.2 per cent, while Nikkei 225 (32,450) is up by a marginal 0.1 per cent.
In the domestic market, all the mid- and small-cap indices have advanced. Barring Nifty Healthcare index (down by 0.2 per cent), all the sectoral indices are in green. Nifty IT and Nifty Realty are the top gainers, up by 1.6 and 1.1 per cent, respectively.
The above factors indicate a broad-based buying in the market. Nifty 50, and consequently its futures contract, are likely to gain further.
Nifty 50 futures
The Nifty 50 July futures opened today’s session higher at 19,522 versus yesterday’s close of 19,475. It is currently hovering around 19,500.
The nearest resistance can be spotted at 19,550. A rally past this level can take the contract to 19,680 today. Although the contract traded above 19,550 yesterday, it could not sustain above that level. If it manages to surpass this level again, it can lead to a sustainable rally.
On the other hand, if the contract falls from here, it can find support at 19,450 and 19,380.
Trading strategy
Despite bullish signs, Nifty futures is facing a resistance at 19,550.
Buy the contract when it rallies past 19,550. Place stop-loss at 19,480. When the contract touches 19,650, tighten the stop-loss to 19,600. Book profits at 19,680.
Supports: 19,450 and 19,380
Resistances: 19,600 and 19,680