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Nifty futures (20,380)
Nifty 50 (20,250) opened today’s session with a gap-up at 20,194.10 versus Thursday’s close of 20,133.15. The index is now at up 0.6 per cent for the day and is trading at record levels.
The market breadth gives a bullish picture as the advance/decline ratio of Nifty 50 stands at 37/13. Moreover, all the mid-, small-cap indices and the sectoral indices too are in the green. This signals a broad-based buying.
Among the sectors, Nifty PSU Bank and Nifty Realty, up 2.2 and 1.5 per cent respectively, are the top gainers.
The chart of Nifty 50 and Nifty futures is bullish and considering the above conditions, the probability of further rally is high.
Nifty 50 futures
The December futures contract of Nifty 50 opened today’s session higher at 20,292.90 versus yesterday’s close of 20,270.60. It is now trading near 20,380, up about 0.6 per cent after the end of the first hour of today’s trade.
Like the underlying index, Nifty futures too has hit record levels. From the current level, the nearest potential resistance levels are 20,500 and 20,600.
In case there is a correction, Nifty futures is unlikely to fall below 20,300, a considerable intraday support. Below this, the nearest support is at 20,170.
Trading strategy
Buy Nifty futures for intraday at the current level of 20,380 and add longs in case the price dips to 20,330. Place stop-loss at 20,280. Book profits at 20,500.
Supports: 20,300 and 20,170
Resistance: 20,500 and 20,600
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