Nifty 50 June Futures (18,836)

The Nifty 50 and Sensex continue to display resilence, with both indices are up about 0.26 per cent each. The Sensex is currently trading at 62,321 points, while the Nifty at 18,776 points.

The overall outlook remains bullish, with the Nifty expected to rise to 18,900-19,000 in the next few sessions. But thereafter the price action will need a close watch. A corrective fall from around 19,000 is a possibility.

Global indices

All major Asian indices are in the red, with the Nikkei 225 (at 31,450) down 1.45 per cent has been beaten down the most.

In the US, the Dow Jones Industrial Average (33,665) has begun to move up again after witness a fall initially this week. The overall bias is positive. We expect the Dow Jones to rise further towards 34,000 and higher in the coming days.

Nifty 50 Futures

The Nifty 50 June Futures (18,836) is up 0.2 per cent so far today. The outlook is bullish. The Nifty 50 June Futures contract can rise to 18,900-18,930 in the coming sessions. Immediate resistance is at 18,850. A break above it can trigger the rise to 18,900-18,930. Support is in the 18,800-18,780 region.

The bullish bias will get negated only if the contract declines below 18,780. In that case, a fall to 18,730-18,700 is possible.

Trade Strategy

Traders can go long now. Accumulate on dips at 18,805. Keep the stop-loss at 18,765. Trail the stop-loss up to 18,845 as soon as the contract moves up to 18,870. Move the stop-loss further up to 18,865 when the contract touches 18,890. Exit the long positions at 18,920.

Supports: 18,780, 18,730

Resistances: 18,850, 18,930.