The Nifty 50 (18,385) and Sensex (62,100) began today’s session with a gap-up following positive cues from their Asian peers. Among the major Asian indices, Nikkei 225 (30,970), ASX 200 (7,145) and KOSPI (2,560) have gained between 0.15 and 0.6 per cent.

In the domestic market, the market breadth appears positive too, i.e., the advances/declines ratio of Nifty 50 stands at 33/17. Moreover, all the mid- and small-cap indices and also the sectoral indices are in the green. Among the sectors, Nifty Media and Nifty FMCG are the top gainers, up by 1 and 0.7 per cent, respectively.

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The above factors show that the equity market is positive and there is broad-based buying in the Indian market.

Nifty 50 futures

The June expiry futures of Nifty 50 began the session higher at 18,440 versus yesterday’s close of 18,420. It is currently trading around 18,460.

Although the current level is a minor hurdle, we expect the futures to breach it and rally to 18,520 before the end of the day. Above 18,520, it could even rally to 18,600.

On the other hand, if the contract drops from the current level, it can find support at 18,400. Subsequent support is at 18,360.

Trading strategy

Given the overall bullish bias, traders can go long on Nifty futures at the current level of 18,460. Add more longs in case the price dips to 18,400. Place stop-loss at 18,375. Exit the longs at 18,520.

This is an intraday trade recommendation. Exit the positions just before the session closes irrespective of the price.

Supports: 18,400 and 18,360

Resistance: 18,520 and 18,600