Nifty 50, after closing clearly above 20,000 on Wednesday, has begun today’s session with a gap up. Currently trading at 20,150, it is up 0.4 per cent after the first hour of today’s trade. Likewise, Sensex opened with a gap-up and is now trading at around 67,690, up 0.3 per cent.

The market sentiment is bullish as the major Asian indices are in the green. Nikkei 225 (33,200), ASX 200 (7,200) and KOSPI (2,560) are up between 0.6 and 1.5 per cent.

In the domestic market, the bullish sentiment is supported by market breadth of the benchmark indices. For instance, the advance/decline ratio of Nifty 50 stands at 42/8. All mid- and small-cap indices and all sectoral indices too are in the green.

Nifty Metal and Nifty Realty are the top gainers, up 2.4 and 1.7 per cent, respectively. Overall, the domestic market is bullish and the likelihood of further rally is high.

Nifty 50 futures

The September futures contract of Nifty 50 opened today’s session with a gap-up at 20,150 versus yesterday’s close of 20,125. After marking a high of 20,205 the contract is now trading around 20,170.

That said, the contract has a resistance at 20,180. A breakout of this level can lift the contract to 20,300. On the other hand, if there is a price decline, Nifty futures can fall to 20,070, a support. Subsequent support is at 20,000.

Trading strategy

Even though the trend is bullish, Nifty futures face a resistance at 20,180. Hence, traders can stay on the fence and go long once the contract breaks out of the resistance at 20,180.

Target and stop-loss for the above trade can be 20,280 and 20,130 respectively.

Supports: 20,070 and 20,000

Resistance: 20,180 and 20,300