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The Indian benchmark indices i.e. the Nifty and the Sensex indices have been appreciating since morning. Both the spot indices have gained a little over 2.5 per cent so far. This is despite bearish cues from the Asian markets. Among the major Asian indices, the Nikkei ended the session with half a per cent loss whereas the Hang Seng and the Shanghai composite is trading lower by 0.8 per cent and 0.6 per cent respectively.
The market breadth of the Nifty 50 index signals a strong bullish bias as 45 out of the 50 stocks are in the green. The mid-cap and the small-cap indices too have gained. Also, all the sectoral indices have gone up today, led by the Nifty FMCG index, up by 4.3 per cent. This is followed by the Nifty metal index, up by 3.4 per cent.
The April futures contract of the Nifty began the session with a considerable gain. It opened at 9,189 versus Monday’s close of 9,011. After registering an intraday high of 9,282 it is currently trading at 9,220. Thus, the contract has broken out of the key resistance at 9,100 which had been acting as a significant hurdle. As long as the contract remains above 9,100 it will be bullish. But since morning, 9,250 is resisting the contract to extend the gain. Considering these factors, traders can go long with stop-loss at 9,200 if the contract rallies past 9,250.
Strategy: Initiate longs if the contract rallies past 9,250
Supports: 9,200 and 9,130
Resistances: 9,250 and 9,300
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