Despite bearish cues from Asian markets, domestic benchmarks Nifty 50 (17,595) and Sensex (59,835) have gained nearly 0.25 per cent each.

The rise in the benchmarks could be attributed to the decision of the RBI to keep the repo rate unchanged at 6.5 per cent. RBI has also revised its FY24 retail inflation projection a shade lower to 5.2 per cent from its earlier projection of 5.3 per cent.

The central bank has marginally increased its real GDP growth projection for FY24 to 6.5 per cent from its earlier projection of 6.4 per cent.

The above factors are keeping the sentiment positive for the domestic market. However, among the major indices, Nikkei 225 (27,450), ASX 200 (7,200), Hang Seng (20,260) and KOSPI (2,465) are down between 0.3 and 1.3 per cent.

However, traders should note that today is an expiry day, which can induce volatility.

Nifty 50 futures

The April futures of the Nifty 50 index opened the day slightly lower at 17,600 versus yesterday’s close of 17,622. It is currently trading around 17,650.

Note that 17,650 is a crucial resistance. A clear breach of this can resistance can lift the contract quickly to 17,750. Resistance above this level is at 17,825. On the other hand, if there is a decline from the current levels, the contract can find support at 17,600 and 17,500.

Trade strategy

Despite the positive momentum, traders can wait till the Nifty futures breaks out of 17,650. In such a case, place stop-loss at 17,575. When the contract rallies past 17,750, tighten the stop-loss to 17,680. Book profits at 17,825.

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: 17,600 and 17,500

Resistances: 17,750 and 17,825

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