Nifty 50 April Futures (10,247)

The domestic benchmark indices, the Nifty and Sensex, started the session in negative territory, taking bearish cues from the global markets. However, the indices bounced back into the green and turned volatile, moving sideways in a narrow range.

The US markets ended in the negative in the last session, the Dow declining about 2 per cent and the S&P 500 index falling 2.2 per cent. The Asian stocks are showing mixed cues, following a negative start.

The Nifty April contract started the session with a gap-down open at 10,212. After recording an intra-day high at 10,268, the contract plunged to mark an intra-day low at 10,206. But the contract bounced back once again. The market breadth of the Nifty index is biased towards declines. The contract faces resistance at 10,265. Only a decisive rally above this resistance can strengthen the bullish momentum and take the contract northwards to 10,280 and 10,300 levels. The next resistances are at 10,330 and 10,350 levels.

On the other hand, strong falls below the immediate support level of 10,225 will reinforce the down-move and drag the contract down to 10,206 or 10,200 levels. A further decline below 10,200 can drag the contract down to 10,175 and 10,150 levels. Traders should remain cautious as long as the contract is range-bound between 10,225 and 10,265 levels.

Strategy: Range-bound movement is seen, tread with caution.

Supports: 10,225 and 10,200

Resistances: 10,265 and 10,280

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