Nifty 50 began today’s session flat at 24,062 versus last week’s close of 24,056. It is now trading at 24,060.
The advance/decline ratio of Nifty 50 currently stands at 29/21, showing a bullish bias. Dr Reddy’s Laboratories, up nearly 4 per cent, is the top gainer, followed by Shriram Finance, up 1.8 per cent.
On the other hand, Kotak Mahindra Bank has lost the most by declining 2.5 per cent, followed by Adani Enterprises, down 1.8 per cent.
Among the sectoral indices, Nifty Healthcare and Nifty Pharma top the chart, advancing 0.9 per cent each, whereas Nifty Auto and Nifty Oil & Gas are the weakest, declining 0.7 per cent each.
As it stands, there are no clear indications about the intraday trend yet.
Nifty 50 futures
The June expiry Nifty futures began today’s session at 24,065 versus last week’s close of 24,102. It slipped after opening and is now trading at 24,050, down 0.25 per cent.
Friday’s bearish pin bar indicates that Nifty June futures are now facing selling pressure. While this may not turn the outlook bearish, we are likely to see a minor decline.
The nearest support levels for the contract are at 23,900 and 23,800. So, a potential decline to these levels can attract fresh buyers. In such a case, Nifty June futures can rebound to 24,200.
However, if the contract breaches the support at 23,800, the downtrend can extend to 23,650 and subsequently to 23,500.
Overall, even though the broader trend is positive, we are likely to see a temporary blip.
Trading strategy
Risk-averse traders can refrain from trading and wait for more clarity. Although traders with high risk tolerance can short Nifty futures (Jun) now at 24,050. Place stop-loss at 24,150 and book profits at 23,850.
Supports: 23,900 and 23,800
Resistance: 24,140 and 24,200