Nifty 50 April Futures (14,930)

The Sensex and the Nifty 50 started the session on a positive note and continued to trend upwards on the back to buying interest. The Asian markets are mixed today - the Nikkei 225 is almost hovering flat at 29,730 levels, while the Hang Seng index has slumped 0.8 per cent to 28,708 levels in today's session. Both the Sensex and the Nifty 50 have advanced about 1.1 per cent each. The market breadth of the Nifty 50 index is completely biased towards advances. The India VIX has declined 1.6 per cent to 20.5 levels. On the back of buying interest, the Nifty mid and small-cap indices have gained 1.1 per cent and 1.7 per cent, respectively. All the sectoral indices are hovering in the positive territory. Top gainers are Nifty PSU Bank and Nifty Bank that have gained 3 per cent and 1.8 per cent correspondingly.

The April month index futures commenced the session on a flat note, opening at 14,750. After an initial dip, the contract recorded an intraday low at 14,701, from where it bounced. Subsequently, the contract breached a key barrier at 14,850 and continued to trend upwards. The near-term outlook stays positive as long as the contract trades above the key level of 14,850. The contract faces resistances ahead at 14,950 and then at 15,000. A decisive break above the vital resistance level of 15,000 can push the contract higher to 15,050 and then to 15,100 levels in the ensuing trading sessions. On the downside, if the contract falls below the base level of 14,850, can drag it lower to 14,800 and then to 14,750 levels.

Strategy: Make use of intraday dips to buy the contract with a stop-loss at 14,850 levels

Supports: 14,850 and 14,800

Resistances: 14,950 and 15,000

BL Research Bureau

Published on April 7, 2021