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Sensex and Nifty 50 are trading marginally lower. Sensex is at 55,850, down -0.14 per cent and Nifty trading at 16,650 is down 0.05 per cent. Nifty is getting support above 16,500 since yesterday. Sensex on the other hand is getting support near 55,400. Resistance is at 16,700 on the Nifty and for Sensex it is at 56,000. A strong break above these hurdles can boost the bullish momentum and take the indices up to 16,800-17,000 (Nifty) and 57,000-58,000 (Sensex) in the coming days. The indices will come under pressure only if they fall below 16,400 (Nifty) and 55,000 (Sensex).
In Asia, Nikkei (27,286) is down 0.3 per cent, whereas the Shanghai Composite (3,171), Hang Seng (21,293) and Kospi (2,674) are up in the range of 0.5-0.8 per cent.
The US markets were closed yesterday. It will have to be seen if they can get a good follow-through rally after a sharp rise last week.
Futures: The Nifty 50 May (16,652) Futures is up marginally by 0.05 per cent. The contract has support at 16,580 and resistance at 16,680. A breakout on either side of these levels will give a clear cue on the next move.
A decisive break below 16,580 can drag the contract down to 16,450. On the other hand, a strong break above 16,680 will boost the bullish momentum and take the Nifty June Futures contract up to 16,800 in the coming sessions.
Traders can wait and go long on a break above 16,680. Stop-loss can be kept at 16,640. Trail the stop-loss up to 16,720 as soon as the contract moves up to 16,745. Move the stop-loss further up to 16,750 as soon as the contract touches 17,670. Book profits at 16,780.
Trading Strategy: Go long on a break above 16,680 with a stop-loss at 16,640 and for the target of 16,780. Trail the stop-loss up to 16,720 as soon as the contract moves up to 16,745. Move the stop-loss further up to 16,750 as soon as the contract touches 17,670
Supports: 16,580 and 15,450
Resistances: 16,680 and 16,800
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