Nifty call: Buy above 9,455 with stop-loss at 9,380

Nifty 50 May futures (9,440)

The Indian benchmark indices i.e. the Nifty and the Sensex, opened with a huge gain today. However, the indices were unable to build a rally and have moderated. But they are still in the green and for now, the Nifty spot and the Sensex spot indices are trading higher by about 2.4 per cent each.

Asian stocks are mixed as the Nikkei index has lost nearly half a per cent today, whereas the Kospi index is up by half a per cent. On the other hand, the Hang Seng and Shanghai composite indices are trading flat.

The market breadth of the Nifty 50 index is bullish as 46 of the 50 stocks in the index have gained so far. Also, the mid-cap and the small-cap indices are up by over 2 per cent each. Except the Nifty Pharma index, which is down by one per cent, all the sectoral indices are positive today. The Nifty PSU Bank index is the top gainer, up by 4.9 per cent, followed by the Nifty Bank and the Nifty Private Bank indices, each up by 4.5 per cent. Thus, most of the gains have been witnessed in the banking space.

The May futures contract of the Nifty index opened significantly higher at 9,530, compared to Tuesday’s close of 9,212. But after registering an intra-day high of 9,557, the contract began moderating. It declined to the day’s low of 9,356, and then recovered to move above the important level of 9,400. While the contract stays above that level, chances for more bulls to come in are higher.

But an intra-day consolidation range can be spotted as the contract is treading between 9,415 and 9,455. Considering these factors, traders can initiate fresh long positions if the contract rallies past 9,455. Stop-loss can be at 9,380.

Strategy: Buy above 9,455 with stop-loss at 9,380

Supports: 9,380 and 9,360

Resistances: 9,500 and 9,550

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