The Indian benchmark indices i.e., the Nifty 50 and the Sensex began the session with a gap-up following bullish cues from the Asian markets. Both indices rallied and currently, Nifty 50 at 15,575 and Sensex at 52,335 are up by 1.45 per cent each so far.
Among the Asian majors, Nikkei 225, ASX 200, Hang Seng and KOSPI are up in the range of 0.6-1.9 per cent.
Supporting the bullish bias, the advance-decline ratio of the Nifty 50 stands at 49-1. Moreover, all the mid- and small-cap indices are trading in the green and so does all the sectoral indices. Therefore, the buying seems to be broad-based and the rally could sustain through the day.
Futures: Like the underlying Nifty 50, the June futures of the index opened today’s session higher at 15,440 compared to yesterday’s close of 15,347. It then rallied to the current trading level of 15,600.
The contract will most like rally from here and the nearest resistance can be seen at 15,750. If this level is breached, it can move up to 15,875.
On the downside, the likelihood of the contract falling below the support of 15,500-15,525 today is low.
Strategy: Initiate fresh longs at the current level of 15,600 and add more longs when price drops to 15,500. Place stop-loss at 15,450. When the contract touches 15,750, exit half of the longs and tighten the stop-loss to 15,650. Exit the remaining at 15,850.
Supports: 15,525 and 15,500
Resistances: 15,750 and 15,875
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