Nifty 50, the Indian benchmark index, began today’s session with a gap-up at 23,661 versus yesterday’s close of 23,567. But it gave back its gains and is now hovering at 23,520, down 0.2 per cent.
The advance/decline ratio gives the index a bullish bias as it stands at 30/20 currently. Bharti Airtel is the top performer in the index by appreciating 2.7 per cent whereas Hindustan Unilever, down 1.3 per cent, is the top loser.
The mid- and small-cap indices are in the green. Among the sectors, Nifty IT, up 1.4 per cent, is the top gainer. On the other hand, Nifty FMCG, down nearly 0.7 per cent, is the top loser.
Nifty 50 futures
The June futures of Nifty 50 opened higher at 23,625 versus yesterday’s close of 23,582. It is now trading at 23,540, down 0.2 per cent.
The contract is now trading near the lower end of the upward channel within which it has been moving over the past two weeks. Nifty futures is expected to find support at 23,530. Immediately below this is another support at 23,500.
If the contract rises on the back of the above-mentioned levels, it can rally to 23,750 over the next few sessions. But if Nifty futures breaks the support at 23,500, it can extend the downswing to 23,350 or even to 23,250.
Trading strategy
Buy Nifty futures now at 23,540 and add longs if the price dips to 23,500. Place stop-loss at 23,450. When the contract rises to 23,650, alter the stop-loss to 23,570. Exit at 23,700.
Supports: 23,530 and 23,500
Resistance: 23,750 and 24,000