opened today’s session with a gap-up at 24,691 versus Wednesday’s close of 24,620. It rallied after opening and is now at 24,730, up about 0.5 per cent.
The advance/decline ratio indicates a considerable bullish inclination as it stands at 40/10. Eternal (up 3.4 per cent) followed by Dr Reddy’s Laboratories (up 2.9 per cent) are the leaders in the benchmark index.
On the other hand, and , down nearly 0.7 per cent each, are the top losers.
Like Nifty 50 index, the mid- and small-cap indices too are in the green. There is a drop in volatility as indicated by India VIX (the volatility index), which is down 3.5 per cent at the end of the first hour of today’s trade. These are positive signs.
Among the sectors, barring Nifty PSU Bank (down 0.2 per cent), all others have advanced. Nifty Pharma (up 1 per cent) and Nifty Healthcare (up 0.9 per cent) are the best performing sectors so far today.
Nifty 50 futures
The June expiry Nifty futures opened today’s session marginally higher at 24,752 versus yesterday’s close of 24,729. It gained after opening and is currently hovering around 24,830, up 0.4 per cent.
The chart shows that the contract has found support at 24,650 as this level arrested the decline. After hovering around this level over the past few sessions, Nifty futures (Jun) has seen a rebound today, indicating that the bulls are capitalising on the base formed at 24,650.
Although 24,850 is a minor resistance, we expect the contract to get past this level and rise to 25,150 and 25,250 over the next few sessions.
That said, in case Nifty futures (Jun) drops from the current level and breaches the support at 24,650, the near-term outlook can turn weak. In this case, the contract can decline to 24,100 and 24,000.
Trading strategy
To add some certainty, traders can wait for now and buy Nifty futures (Jun) once it breaks out of 24,850. Target and stop-loss can be 25,150 and 24,700 respectively.
Supports: 24,700 and 24,650
Resistance: 25,150 and 25,250