Nifty 50 began today’s session with a significant gap-up at 24,420 versus last week’s close of 24,008. It rallied after opening and is currently hovering around 24,720, up 3 per cent.
The advance/decline ratio of the index is at 48/2, which shows considerable bullish inclination. Adani Enterprises (up 6.6 per cent) and Jio Financial Services (up 5.2 per cent) are the leaders.
The only two stocks that are in the red in Nifty 50 are Sun Pharmaceuticals (down 4.6 per cent) and Cipla (down 0.25 per cent).
In line with the benchmark index, all mid- and small-cap indices have advanced. Moreover, barring Nifty Pharma (down 1.5 per cent) and Nifty Healthcare (down 0.8 per cent), all other sectors are up so far today. This shows broad-based buying.
Nifty Realty (up 4 per cent) and Nifty Metal (up 3.7 per cent) are the top performing sectors today until now.
Nifty 50 futures
The May futures of Nifty 50 began today’s session higher at 24,476 compared to Friday’s close of 24,066. It is currently trading at 24,820, up 3.1 per cent.
The rally in the first hour of today’s trade shows strong momentum. But since there is a resistance at 24,870, there might be a minor correction on the back of this.
However, the dip will be limited, and Nifty futures can soon resume the rally. The contract can touch 25,000 soon. A breakout of 25,000 can lift it to 25,200.
In case Nifty futures slip below 24,650, the intraday outlook may turn weak. But as it stands, the bulls are in the driving seat and a decline below 24,650 is unlikely to occur.
Trading strategy
Go long on Nifty futures (May) at 24,650 with a stop-loss at 24,500. Target can be 25,000.
Supports: 24,650 and 24,500
Resistance: 25,000 and 25,200