Nifty 50 is managing to hold higher. However, it seems to lack strong follow-through buyers and gain momentum. The index is currently trading at 25,155, up 0.21 per cent. The advances/declines ratio is at 36:14. This is positive.
Among the index components Grasim Industries (₹2,730) has surged 4.65 per cent and is the outperformer so far today. ICICI Bank (₹1,410), down 1.1 per cent is the most beaten down stock so far for the day.
Nifty 50 Outlook
The index has been volatile since the opening today. After opening at 25,199, it fell to a low of 25,055 and then has risen back from there. The support in the 25,050-25,000 region is holding well for now. That keeps intact our broader bullish view. As long as the Nifty stays above 25,000, the upside is open to target 25,250-25,300 in the coming sessions. From a big picture it will also keep the doors open to target 25,600 and higher in the short term.
Nifty 50 Futures
The Nifty 50 June Futures (25,240) is up 0.23 per cent. The contract fell to a low of 25,130 and then has risen back well from there. Outlook is bullish. Support is in the 25,100-25,050 region which is holding well for now. We retain our bullish view of seeing a rise to 25,500 this week.
The Nifty 50 June Futures contract has to fall below 25,050 in order to turn the outlook negative. Only then a fall to 24,900 and lower levels will come into the picture.
Trade Strategy
Yesterday we had recommended to take a positional trade with a time frame of one week. We had suggested to go long at 25,178 and accumulate at 25,130 and 25,080. The first two orders (25,178 and 25,130) would have been triggered. So, now the average entry would be 25,154. Retain the buy order at 25,080. Follow the same strategy mentioned yesterday.
Trail the stop-loss up to 25,220 as soon as the contract goes up to 25,270. Move the stop-loss further up to 25,320 and 25,400 when the contract touches 25,370 and 25,440 respectively. Exit the longs at 25,500.
Supports: 25,100, 25,050
Resistances: 25,400, 25,550