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Nifty 50 April Futures (22,617)
Nifty 50 has begun the week on a positive note. The index is trading at 22,512, up 0.83 per cent. The advance/decline ratio is at 44:6. This is positive. It indicates that the sentiment could remain bullish for the day. As such more rise is possible during the day if this sustains.
Nifty 50 outlook
Intraday support is in the 22,420-22,400 region. Immediate resistance is at 22,530. This resistance has been capping the upside for the index for some time. So, a strong break above 22,530 could be needed for the Nifty to gain momentum. Such a break can take the Nifty 50 index up to 22,600-22,700 and even higher in the coming sessions.
The outlook will turn negative only if the index declines below 22,400. In that case, a fall to 22,200 can come into the picture.
Nifty 50 Futures
The Nifty 50 April Futures (22,617) is up 0.58 per cent. Support for the contract is in the 22,500-22,450 region. The outlook is bullish. The Nifty 50 April Futures contract can rise to 22,850 in the coming sessions.
A break below 22,450 will turn the outlook negative. It can then take the contract down to 22,350 and lower. However, such a fall looks unlikely as the price action on the chart is strong. So, we can expect the contract to sustain above 22,500 itself.
Trade Strategy
Considering the risk/reward ratio, traders have to wait for dips to go long. Take long positions when the contract falls to 22,540. Accumulate at 22,510. Keep the stop-loss at 22,470 initially. Trail the stop-loss up to 22,570 as soon as the contact moves up to 22,610. Move the stop-loss further up to 22,680 when the contract touches 22,710. Exit the long positions at 22,780.
Supports: 22,500, 22,450
Resistances: 22,650, 22,850
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