Comments
Nifty 50 April Futures (14,830)
The equity market acro ss Asia seems to be positive as the major stock indices are trading in the green today. The Nikkei 225 index gained 0.7 per cent and the Hang Seng index is up by 1.2 per cent so far. Early riser, the ASX 200 ended the day with a gain of 0.6 per cent. Following this, the Indian benchmark indices opened with a considerable gap-up. However, the indices could not extend the gain where the Nifty 50 is trading higher by 0.4 per cent and the Sensex is trading higher by 0.3 per cent compared to yesterday’s closing.
The market breadth of the Nifty 50 index is showing a positive inclination as the advance-decline ratio stands at 36-14 and the volatility has dropped as indicated by India VIX – the volatility index. It is down by 2.2 per cent to 20.20.
The mid- and small-cap indices are trading in the green and are up between 0.6 and 1.5 per cent. But the sectoral indices are mixed. The Nifty metal index and the Nifty PSU bank index are the top gainers, up by 3.8 and 0.8 per cent, respectively whereas the Nifty FMCG index and the Nifty financial services index are the top losers, down by 0.2 per cent each.
Futures: The April futures contract, like the underlying Nifty 50 index, opened the session with a gap-up at 14,823 versus yesterday’s close of 14,752. It then rallied for the first few minutes into the session and marked a fresh high of 14,879. However, the contract overturned the trend swiftly and started heading south. Consequently, it made an intraday low of 14,760 and in the past hour, the contract has moved up and is now trading around 14,830.
As the equity has been positive since the morning, the likelihood of Nifty 50 and in turn its futures contract recovering is high. Hence, traders can consider going long at current levels with stop-loss at day’s low of 14,760. The contract is likely to get past today’s high at 14,879 and can face hurdle at 14,900. A breach of this level can lift the contract to 14,940.
Strategy: Buy the contract with a stop-loss at 14,760
Supports: 14,800 and 14,760
Resistances: 14,900 and 14,940
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.