Tracking the bullish Asian markets, the Nifty 50 and the Sensex commenced the session with a gap-up open and continues to trend upwards. The Nikkei 225 is up by 0.5 per cent to 28,718 levels and Hang Seng index has surged 1.5 per cent to 27,950 levels in today’s session.
The Sensex has climbed 0.7 per cent and Nifty 50 has advanced 0.7 per cent so far. The market breadth of the Nifty 50 is biased towards advances.
On the other hand, the India VIX has fallen 2.8 per cent to 12.6 per cent indicating decrease in volatility. The Nifty mid and small-cap indices are showing mixed trends — the mid-cap index is marginally hovering in the negative territory while the small-cap index is up by 0.57 per cent.
Among the sectoral indices, buying interest is seen in the Nifty Financial Service and PVT Bank that have advanced 1.5 per cent and 1.34 per cent, respectively. Nifty FMCG, IT and media indices are down by 0.2-0.3 per cent.
The Nifty July month contract began the session with a gap-up open at 15,798. The contract recorded an intra-day low at 15,758 and resumed the uptrend. The contract breached the key resistance at 15,800 and trades above this level. The near-term stance stays positive as long as the contract trades above 15,760 levels.
Traders can buy the contract with a fixed stop-loss at 15,780 levels. A strong rally above 15,850 can take the contract higher to 15,880 and then to 15,900 levels. Supports below 15,760 are placed 15,730 and 15,710 levels.
Strategy: Buy the contract on dips with a stop-loss at 15,780 levels
Supports: 15,760 and 15,730
Resistances: 15,850 and 15,880