The Indian benchmark indices – Nifty 50 (17,370) and Sensex (59,000) – began the week with a gap-up. Post the open, both indices have given up the gain and are now hovering around last week’s close.

Nevertheless, the market breadth of the Nifty 50 is showing a bullish bias as the advance/decline ratio stands at 30/20. Interestingly, mid- and small-cap indices have gained in the early trade. Among the sectors, Nifty Auto is the top gainer, up by 1.3 per cent, whereas Nifty FMCG, down by 0.5 per cent, is the top loser.

Equity market in Asia looks mixed. Among the majors, Nikkei 225 (28,190) and ASX 200 (7,220) are up 0.5 per cent each, whereas Hang Seng (20,330) and KOSPI (2,475) have lost 0.3 and 0.2 per cent respectively.

Also read: Stocks that will see action on April 3, 2023

Nifty 50 futures

The April futures of the Nifty 50 index opened with a gap-up at 17,470 against last week’s close of 17,442. It scaled back after opening higher and is currently hovering around 17,440.

Since there is a strong resistance at 17,500, the contract is struggling to appreciate from here. If Nifty futures rally past this hurdle, it can quickly rally to 17,650, a resistance. Subsequent resistance is at 17,750.

On the other hand, if the contract falls from the current level, it can find support at 17,350, a support. Next support can be seen at 17,220. We are not likely to see a decline below 17,350 today.

Also read: Crude oil up by more than 5% on surprise OPEC output cut

Trading strategy

Since Nifty futures is facing a resistance, we recommend staying out now. Trades can buy the contract if it breaks out of 17,500. Place stop-loss at 17,425. Book profits at 17,650.

Note that the above trade recommendation is for intraday. So, exit the positions by the end of the day if neither target nor stop-loss is triggered.

Supports: 17,350 and 17,220

Resistance: 17,500 and 17,650