Nifty 50 (18,900) and Sensex (63,675) opened today’s session with a gap-up and have hit record high. The price action is bullish and both the indices are set to rally further.
Among the Asian peers, Nikkei 225 (33,060) and ASX 200 (7,190) are up by 1.6 and 1 per cent, respectively. On the other hand, Hang Seng (19,100) and KOSPI (2,565) have lost 0.2 and 0.6 per cent, respectively.
Despite the mixed cues from the Asian market, the Indian benchmark indices are bullish today.
Similar to benchmarks, all mid- and small-cap indices have gained. All sectors, barring Nifty Media (down by 0.2 per cent), are in green, indicating broad-based buying and, thus, the high probability of further rally.
Nifty 50 futures
The June futures contract of Nifty 50 opened today’s session higher at 18,850 against yesterday’s close of 18,811. It is now hovering around 18,910.
The contract is likely to touch 19,000 today. A breach of this level can open the door for a rally to 19,100.
On the other hand, if Nifty futures decline from the current level, it can find support at 18,870 and 18,840.
Trading strategy
Buy Nifty futures now at around 18,910. Add more longs if the price dips to 18,870. Place stop-loss at 18,820.
When the contract goes above 18,950, tighten the stop-loss to 18,900. Book profits at 19,000.
Supports: 18,870 and 18,840
Resistances: 19,000 and 19,100