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Nifty 50 April futures (9,455)
The Indian benchmark indices have advanced a little over one per cent since morning. The positive bias was instilled by other major Asian markets, which have gained today. While the Hang Seng index is marginally up by 0.1 per cent, the Shanghai composite is trading higher by 0.3 per cent.
The market breadth of the Nifty 50 index indicates a considerable bullish bias, as 40 of the 50 stocks in the index are in the green. Like the benchmark indices, all the mid-cap and small-cap indices are up by over one per cent. Consequently, all the sectoral indices have gained, showing broad-based buying. The Nifty metal index is the top gainer, up by about 4 per cent, followed by the Nifty auto index, up by nearly 2 per cent.
Also, volatility has dropped as indicated by the India VIX – the volatility index. It has come down by 4.4 per cent to 33.8 levels.
The April futures contract of the Nifty index began the session with a gap-up. It opened at 9,425 versus Tuesday’s close of 9,397. The contract has broken out of the critical level of 9,400, opening the door for further strengthening; it is currently trading at 9,455. While it remains above 9,400, the contract can be bullish. Hence, traders can go long on declines, with stop-loss at 9,400.
Strategy: Buy on dips with a stop-loss at 9,400
Supports: 9,400 and 9,375
Resistances: 9,500 and 9,580
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