Nifty 50 April Futures (17,782)

NSE Nifty and BSE Sensex have advanced in early trade on Tuesday. Both the indices are up about 0.7 per cent each.

Nifty 50 rose above the key intermediate resistance level of 17,700.  It is currently trading at 17.740. If the benchmark sustains the current momentum, it can break the next resistance at 17,800. If Nifty rises above 17,800, it will pave the way for an extended rise to 18,000 this week.

Global indices

In Asia, barring the Shanghai Composite (3,303.81, down 0.35 per cent), other major indices are in green.

In the US, the Dow Jones Industrial Average (33,586) has been gaining. The near-term outlook is positive. The Dow Jones can test 34,000 in the coming days. The 34,000 is a crucial resistance for the index.

Nifty 50 Futures

The Nifty 50 April Futures (17,782) is up 0.6 per cent. The contract is facing resistance at 17,800.

The contract made a high of 17,809 and has come-off slightly. Support is in the 17,730-17,700 region and that can limit the downside for the day. As long as the contract trades above 17,700, it has chances to break the 17,800-levels. Such a break can take the Nifty 50 April Futures contract up to 17,880-17,900 and even to higher levels.

The outlook will turn bearish if the contract breaks below 17,700.

If the contract falls below the 17,700-levels, there are chances of a further slide to 17,600 and to even lower levels.

Trade strategy

Go long on dips at 17,735 and 17,720. Keep the stop-loss at 17,690. Trail the stop-loss up to 17,755 as soon as the contract moves up to 17,780. Move the stop-loss further up to 17,785 when the contract touches 17,805. Exit the long positions at 17,830.

Supports: 17,730, 17,700

Resistances: 17,800, 17,880

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