Comments
The Nifty 50 (19,925) and Sensex (66,900) have opened today’s session on the front foot and are up 0.5 per cent each after the first hour of trade.
The Indian indices have gained despite mixed signals from the Asian market. Among the major ones, ASX 200 (7,170) and KOSPI (2,550) are up 0.2 per cent each, whereas Nikkei 225 (32,450) and Hang Seng (17,920) have lost 0.5 and 1.5 per cent each.
In the domestic market, the bullish inclination is substantiated by the market breadth of the benchmarks. For instance, the advances/ declines ratio of Nifty 50 stands at 45/5. In addition, all the mid- and small-cap indices, as well as all the sectoral indices are in the green today so far.
Nifty PSU Bank and Nifty Auto are the top sectors today, and are up 1.9 and 0.8 per cent, respectively.
Overall, the domestic market is bullish.
Nifty 50 futures
The September futures contract of Nifty 50 opened today’s session with a gap-up at 19,912 versus Friday’s close of 19,872. It is currently hovering around 19,985.
The nearest resistance from the current level is 20,060, with the next barrier at 20,180. On the other hand, the support levels are at 19,925 and 19,850.
The 14-day average true range for Nifty futures is nearly 130 points, and the contract has already rallied over 100 points today. So, the upside from the current level is likely to be limited from the current level.
So, there is a chance for Nifty futures to chart a sideways trend for the rest of the day, or see a corrective decline and then rise.
Trading strategy
The trend is clearly bullish. However, the risk-reward ratio is unfavourable at the moment. Therefore, fresh longs are not recommended at this juncture.
Stay on the side-lines and go long if Nifty futures dip to 19,950. Target and stop-loss can be at 20,060 and 19,890 respectively.
Supports: 19,925 and 19,850
Resistance: 20,060 and 20,180
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.