The domestic equity indices - the Sensex and the Nifty began the session with a gap-up open due to buying interest. Both the indices continued to trend upwards and have gained more than 2.5 per cent. The market breadth of the Nifty index is biased towards advances. The India VIX has nose-dived 16.8 per cent to 23.35.
The Nifty mid and small-cap indices also experience buying interest and have jumped 4 per cent each in today's session.
The Nifty May month contract began the session with a large gap-up open at 11,651. After marking an intra-day low at 11,601 the contract took support and continued to trend upwards. Thereafter, the contract breached a key resistance at 11,700.
The near-term outlook is bullish for the contract. It can continue to trend upwards and test resistance at 11,800. A further move above this level can take the contract higher to 11,825 and 11,850 levels.
Traders can buy the contract in declines with a fixed stop-loss. Key supports below 11,700 are placed at 11,650 and 11,630. Only a strong fall below 11,600 will witness a corrective fall and drag the contract down to 11,575 and 11,550 levels.
Strategy: Make use of declines to buy the contract with fixed stop-loss.
Supports: 11,300 and 11,285
Resistances: 11,370 and 11,385
Also read : Index Outlook: Poll results may lead to volatility
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