Nifty 50, the Indian benchmark index, opened today’s session marginally higher at 23,882 versus yesterday’s close of 23,869. It gained further and is now hovering around 23,950, up 0.3 per cent.

UltraTech Cement is the top gainer by advancing 4.5 per cent whereas Mahindra & Mahindra, depreciating 1.2 per cent so far, is the top loser.

All mid- and small-cap indices and most of the sectoral indices too have gained, indicating a broad-based buying. Therefore, the probability of further rally today is high.

Nifty Healthcare index, up 0.8 per cent, is the best sectoral index by the end of the first hour of trade. On the other hand, Nifty Auto and Nifty IT, down 0.25 per cent each, are the sectors in the red.

The domestic market has been moving up despite the Asian equity market facing a downward pressure. Notably, major indices like Nikkei 225, ASX 200, Hang Seng and KOSPI are down between 0.9 and 2.1 per cent.

Nifty 50 futures

The June futures of Nifty 50 opened lower despite the underlying index beginning on the front foot. It opened at 23,812 against yesterday’s close of 23,868. However, the contract gained after opening and is currently hovering around 23,960, up 0.4 per cent so far today.

The uptrend is intact and so, Nifty futures is likely to gain further. There’s a good chance for the contract to touch 24,200 soon. But note that, being an expiry session, there could be higher than usual volatility.

Nevertheless, the intraday trend will turn bearish only if the contract slips below 23,800, which, at the moment, is unlikely to occur given the bullish momentum.

Trading strategy

Buy Nifty futures now at 23,960 and add longs if the price dips to 23,880. Place stop-loss at 23,780. When the contract rises to 24,100, alter the stop-loss to 23,970. Book profits at 24,200.

Supports: 23,880 and 23,800

Resistances: 24,000 and 24,200

Related Topics