Nifty 50 (18,630) and Sensex (62,900) have opened the week on a positive note.
The indices opened with a gap-up following bullish cues from the Asian market — Nikkei 225 (32,100), ASX 200 (7,220), Hang Seng (19,050), and KOSPI (26,150) are up between 0.5 and 1.8 per cent so far today.
Indicating a broad-based buying, all the mid- and small-cap indices in the domestic market are in the green. Moreover, barring Nifty Realty (down by 0.25 per cent), all other sectors have gained.
Nifty Media, up by 1.6 per cent, and Nifty Auto, up by 1 per cent, are the best performers today. The above factors clearly show a bullish inclination and we expect the market to remain positive for the rest of the day.
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Nifty 50 futures
The June expiry futures of Nifty 50 began the session higher at 18,700 versus previous week’s close of 18,636. It inched up further and is now hovering around 18,710.
The price action shows that the chances are high for Nifty futures to rally more from the current level. Resistance levels can be seen at 18,800 and 18,850. On the other hand, the immediate support is 18,650. Subsequent support is at 18,620.
Go long on Nifty futures at the current level of 18,710. Add more longs in case the price softens to 18,650. Place stop-loss at 18,620.
When the contract rallies above 18,750, tighten the stop-loss to 18,680. Book profits at 18,800. This is an intraday trade recommendation. Exit the positions just before the session closes irrespective of the price.
- Supports: 18,650 and 18,620.
- Resistance: 18,800 and 18,850.