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Nifty 50 April Futures (14,825)
Positive atmosphere was set early in the day by major Asian indices as most of them are trading in the green. While the Nikkei 225 posted a gain of nearly 0.2 per cent the Hang Seng and the Shanghai composite index are trading with a gain of 1.1 per cent and 0.7 per cent, respectively. Consequently, Indian benchmarks opened with a considerable gap-up, where the Nifty 50 is up by 1.5 per cent and the Sensex is up by 1.4 per cent so far.
The market breadth of Nifty 50 as 42 out of the 50 stocks gained so far today. The fear gauge i.e., India VIX – the volatility index – has softened by about 2 per cent to 20.28 for the day till now.
Like the benchmark indices, the mid- and small-cap indices have gained today. They are up between 0.5 and 0.7 per cent. Among the sectoral indices, barring the Nifty realty (down by 1.3 per cent) and the Nifty media (down by 0.4 per cent) all other indices have gained for the day so far. The Nifty metal index is the top performer, up by about 2.6 per cent followed by the Nifty Pharma index, up by 1.9 per cent.
Futures: The April futures contract, similar to its underlying Nifty 50 index, began today’s session with a gap up open at 14,700 versus its previous close of 14,608. The contract then rallied sharply and marked an intraday high of 14,871 after which it softened a bit to the current level of 14,825. Since the major trend is bullish and the buying seems to be broad-based today, the likelihood of the rally sustaining today is high. So, for intraday, one can be bullish and look towards buying on declines. Stop-loss can be placed at 14,750.
From the current levels, the contract is likely to go past today’s high at 14,871 and touch 14,930. A breach of this level can take the contract towards the very important level of 15,000. Support levels can be seen at 14,800, 14,750 and 14,700.
Strategy: Go long on intraday dips with stop-loss at 14,750.
Supports: 14,800 and 14,750
Resistances: 14,930 and 15,000
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