The benchmark indices, which opened almost flat on Wednesday, have moved up since the session opened. The Nifty 50 at 16,545 and the Sensex at 55,500 are up by about 0.4 per cent each.

The domestic indices are up despite the Asian markets displaying mixed signals. The Nikkei 225 and ASX are up by 0.4 and 0.3 per cent, respectively, whereas the Hang Seng and KOSPI are down by 1.25 and 0.3 per cent, respectively.

The market breadth of the Nifty 50 shows a bullish bias as the advances/ declines ratio stands at 34/16. The mid- and small-cap indices, like the benchmarks, are in the green, gaining between 0.1 and 0.4 per cent.

Among the sectoral indices, Nifty Pharma is the top gainer, up by 1.3 per cent. On the other hand, Nifty Auto is the top loser, down by 0.2 per cent.

Although there are bullish signs, the Nifty 50 seems to be stuck in a range, and the direction of the break of range will decide the next leg of trend.

Futures: The July futures of the Nifty 50 began the session almost flat at 16,488 versus yesterday's close of 16,491. It has now rallied to 16,555. As it stands, particularly with respect to the intraday trend, the contract should either breach 16,600 or 16,480 for us to assume the direction with reasonable certainty.

So, traders can stay away for now and initiate fresh trade along the direction of the break of the 16,480–16,600 range.

On the upside, above 16,600, resistance can be spotted at 16,700 and 16,750. Whereas below 16,480, the nearest supports are at 16,350 and 16,250.

Strategy: Stay out of the market for now and initiate trade based on the direction in which Nifty futures break the 16,480–16,600 range.

Supports: 16,480 and 16,350

Resistances: 16,600 and 16,700

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