The Nifty 50 (19,570) and Sensex (65,770) opened flat and remained so after the first hour of trade. The domestic indices are holding well despite bearish cues from their Asian peers. 

Among the major Asian indices, barring Nikkei 225 (33,190) (up by 0.6 per cent), the others are in the red, losing between 0.6 and 0.7 per cent.

Coming back to the domestic market, the market breadth is neutral. For instance, the advances/ declines ratio of the Nifty 50 stands at 25/25. That said, the mid- and small-cap indices have advanced.

Among the sectors, Nifty Pharma, up 1 per cent, is the top gainer, whereas Nifty Metal, down by 0.7 per cent, is the top loser so far today.

Overall, the trend is bullish and even though the Asian indices have lost, Nifty 50 is expected to gain.

Nifty 50 futures

The September futures contract of the Nifty 50 opened today’s session almost flat at 19,650 versus yesterday’s close of 19,653. It is currently trading at around 19,630. 

From here, the contract has support at 19,600, below which 19,540 is another support. A decline below the latter today is unlikely.

On the upside, the contract is likely to appreciate to 19,750. Although there is a minor resistance at 19,700, we expect this number to give up soon in favour of the bulls.

Trading strategy

Buy Nifty futures now at 19,630. Add longs in case the price slips to 19,570. Place initial stop-loss at 19,520. 

When the contract touches 19,700, revise the stop-loss to 19,650. Book profits at 19,740.

Supports: 19,600 and 19,540

Resistance: 19,700 and 19,750