The Asian markets have been exhibiting bullish bias today and taking the positive cues the domestic benchmark indices opened today with a gap-up. Currently, Nifty 50 at 15,560 and Sensex at 52,303, are up by nearly 1 per cent so far. Among the Asian majors, Nikkei 225, Hang Seng and ASX 200 are up in the range of 0.1 and 1.6 per cent. But KOSPI is down by 1 per cent.

The market breadth of the Nifty 50 appears positive as the advance-decline ratio stands at 47-3. All the mid- and small-cap indices are up in the range of 0.7-1 per cent. Moreover, all the sectoral indices, barring the Nifty Oil & Gas (down by 0.2 per cent), all the indices are in the green. The Nifty Auto is the top gainer, up by 3.2 per cent.

Nevertheless, the overall trend in the recent months has been bearish and there has not been a decisive bullish reversal. Hence, there are good chances that the rallies might be sold into.

Futures: Like the underlying Nifty 50, the June futures of the index opened today’s session higher at 15,431 compared to yesterday’s close of 15,403. Post opening, the contract rallied to mark an intraday high of 15,629 and it has softened to the current level of 15,520.

On the upside, the price level of 15,620 seems to be blocking the bulls. Above this level lies the hurdle of 15,680. A rally beyond 15,680 today is less likely. We expect the Nifty futures to decline from here.

So, traders can short Nifty futures at the current level of 15,520. If it moves up, add more shorts at 15,620 and place stop-loss at 15,680. When the contract falls to 15,350, liquidate half of the shorts and tighten the stop-loss to 15,500. Exit the remaining at 15,250.

Strategy: Short at the current level of 15,520. If it moves up, add more shorts at 15,620 and place stop-loss at 15,680. When the contract falls to 15,350, liquidate half of the shorts and tighten the stop-loss to 15,500. Exit the remaining at 15,250.

Supports: 15,350 and 15,250.

Resistances: 15,620 and 15,680.