Nifty 50 April Futures (22,689)

Nifty 50 has opened the week on a positive note. The index opened with a gap-up and is now trading at 22,624, up 0.5 per cent. The advance/decline ratio is at 39:11. It indicates the inherent strength in the index. If this sustains, Nifty can rise further during the day.

Nifty 50 outlook

The intraday outlook is positive. Nifty has good support around 22,530. Nifty 50 index can rise to 22,780-22,800 in the coming sessions.

The outlook will turn negative only if the index declines below 22,500. In that case, a fall to 22,450 and 22,400 will come into the picture.

Global indices

Asian markets are trading mixed. Nikkei 225 (39,345) and Kospi (2,720) are up 0.9 and 0.25 per cent, respectively. Shanghai Composite (3,062) and Hang Seng (16,709) are down 0.17 and 0.1 per cent, respectively.

In the US, the Dow Jones Industrial Average (38,904) rose on Friday. However, it has crucial resistance around 39,200. A strong rise above this resistance is needed to bring back the bullishness. Failure to breach 39,200 from here can drag it down to 38,500.  It will also keep the index vulnerable to fall below 38,500.

Nifty 50 Futures

The Nifty 50 April Futures (22,689) is up 0.4 per cent. The region between 22,650 and 22,600 will now be a very good support for the contract. We expect the contract to sustain above this support zone and rise to 22,900 in the coming sessions.

The outlook will turn bearish only if the contract declines below 22,600. In that case it can fall to 22,500-22,400.

Trade Strategy

Traders can go long now. Accumualte on dips at 22,640. Keep a stop-loss at 22,580. Trail the stop-loss up to 22,710 as soon as the contract moves up to 22,760. Move the stop-loss further up to 22,790 when the contract touches 22,810. Exit the longs at 22,860.

Supports: 22,650, 22,600

Resistances: 22,900, 23,000