Nifty 50 and Sensex have opened the week on a positive note. Both the indices are holding higher and are up about 0.2 per cent each. Nifty has risen above the immediate resistance level of 17,600. It is currently trading at 17,646.

It is important for the index to sustain above 17,600 now to keep the chances alive of seeing more rise this week.

As long as the Nifty stays above 17,600, the near-term outlook is positive to rise to 17,750-17,800 in the near term. But a fall below 17,600 can drag it down to 17,500-17,400 again. So, the price action today is going to be very crucial which can set the tone for the rest of the week.

Global indices

In Asia, Shanghai Composite (3,322) is down marginally by 0.16 per cent. The other major indices, Nikkei 225 (27,633), Kospi (2,517), and Hang Seng (20,331) are all up in the range of 0.28-1.1 per cent.

In the US, the Dow Jones Industrial Average (33,485.29) sustains higher. The near-term outlook is bullish to test 34,000. The price action thereafter will need a close watch to see if the index is reversing lower or continuing to move up.

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Nifty 50 Futures

The Nifty 50 April Futures (17,700) is up 0.3 per cent. Immediate resistance is at 17,720. A break above it can take the contract up to 17,800 during the day. Failure to breach 17,720 can drag the contract down to 17,600 – an important intraday support.

A break below 17,600 will turn the outlook bearish for the day and take the Nifty 50 April futures contract further down to 17,550 and even lower going forward.

Trade strategy

Traders can go long on a break above 17,720. Keep the stop-loss at 17,690. Trail the stop-loss up to 17,735 as soon as the contract moves up to 17,755.

Move the stop-loss further up to 17,760 when the contract touches 17,775. Book profits at 17,785.

  • Supports: 17,600, 17,550.
  • Resistances: 17,720, 17,800.
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