Sensex and Nifty 50 are managing to hold higher and have moved on Friday. Sensex is getting support at 58,500 and Nifty at 17,400. Sensex is up 0.51 per cent and is trading at 58,850. Nifty is at 17,549, up 0.48 per cent. A strong break above 59,000 on the Sensex can boost the bullish momentum and can open doors for a fresh rise to 60,500-61,000. Similarly, Nifty can target 17,800 on a decisive break above 17,600.

In Asia, barring the Shanghai Composite (3,273, up 0.65 per cent) other major indices are trading in red. Nikkei 225 (27,701), Hang Seng (21,787) and Kospi (2,739) are down in the range of 0.45 to 1 per cent.

In the US, the Dow Jones Industrial Average (34,678, down 1.56 per cent) has declined sharply yesterday. However, it can find support in the 34,500-34,000 region. As long as the Dow sustains above 34,000 the broader view is bullish to see 36,000-37,000 on the upside.

Futures: The Nifty 50 April (17,581) is trading just below the key intermediate resistance level of 17,600. A strong break above 17,600 is needed to gain momentum. Such a break can take the contract up to 17,700 in the near-term. It will also keep the broader view bullish to see 17,800 and higher levels eventually.

Traders can go long on a break above 17,600. Stop-loss can be placed at 17,555. Trail the stop-loss up to 17,640 as soon as the contract moves up to 17,660. Move the stop-loss further up to 17,665 as soon as the contract touches 17,680. Book profits at 17,695.

Inability to break 17,600 and a fall below 17,550 can drag the contract down to 17,400 again.

Trading Strategy: Go long on a break above 17,600. Keep the stop-loss at 17,555 for the target of 17,695. Trail the stop-loss up to 17,640 as soon as the contract moves up to 17,660. Move the stop-loss further up to 17,665 as soon as the contract touches 17,680.

Supports: 17,550 and 17,400

Resistances: 17,600 and 17,700

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