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The domestic equity indices, the Sensex and the Nifty made a gap-up open today. After an initial decline, the benchmark indices found support and resumed the up-move. Both the indices have gained about 0.85 per cent each. The market breadth of the Nifty index is biased towards advances.
The India VIX has slumped 15 per cent to 16.4 levels. The Nifty May month contract began the session with gap-up open at 11,765. After recording an intra-day low at 11,678, the contract bounced up. It breached a key resistance at 11,700 and continued to trend upwards. The near-term outlook is bullish for the contract.
Traders can make use of intra-day dips to buy the contract while maintaining a fixed stop-loss at 11,745 levels. The key immediate supports are at 11,750 and 11,725 levels. Only a strong fall below 11,700 levels will alter the near-term positive outlook.
On the upside, a decisive break above 11,800 will strength the up-move and take the contract higher to 11,825 and 11,850 levels.
Strategy: Make use of dips to buy the contract with a fixed stop-loss at 11,745 levels.
Supports: 11,750 and 11,725
Resistances: 11,800 and 11,825
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