Nifty call: Go long at current levels with stop-loss at 15,900

Nifty 50 July Futures (16,080)

The benchmark indices opened today’s session with a gap-up on positive global cues. The Nifty 50 at 16,100 and the Sensex at 54,130 are now up by nearly three-fourths per cent. Among the Asian majors, Nikkei 225, ASX 200, Hang Seng and KOSPI are up in the range of 0.15 – 2.2 per cent.

The Nifty 50’s market breadth indicates a bullish bias as the advance/decline ratio stands at 41/9. All the mid- and small-cap indices are up between 0.8 – 1.2 per cent. Also, all the sectoral indices are in the green, led by the Nifty PSU Bank index, up by 2.5 per cent, followed by the Nifty Consumer durables, up by 2.4 per cent.

The benchmark indices is likely to rally further for the day on broad-based buying.

Futures: Like the underlying Nifty 50, the July futures of the index opened today’s session higher at 16,110 compared to yesterday’s close of 15,990. It rallied to mark an intraday high of 16,133 and is currently hovering around 16,080.

Although there could be a fall from here, the contract can find support at 16,000, and a decline below this level today is unlikely.

On the upside, the contract can rally to 16,200, the nearest resistance. Subsequent resistance is at 16,300. Nevertheless, a breach of 16,200 is difficult, with overall bias still bearish.

Traders can consider initiating fresh intraday long positions, i.e., go long at the current level of 16,080 and add more longs on the intraday dip to 16,000. Keep initial stop-loss at 15,900 and exit the longs at 16,200.

Further trades can be planned based on how the contract reacts to the resistance at 16,200.

Strategy: Go long at the current level of 16,080 and add more longs on an intraday dip to 16,000. Keep initial stop-loss at 15,900. Exit the longs at 16,200.

Supports: 16,000 and 15,900

Resistances: 16,200 and 16,300

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