Nifty 50 May Futures (18,185)

Nifty 50 and Sensex are trading higher with a positive bias. Both the indices are up about 0.2 per cent each. Sensex is trading at 61,301, while Nifty is at 18,125. Nifty has strong support in the 18,000-17,900 region. The chances are high for it to breach 18,200 and see a fresh rally in the coming days.

Fed meeting outcome

There has been a mixed reaction in the market after the US Federal Reserve meeting outcome. As expected by the investors, the Fed has raised the interest rates by 25-basis points. However, there was no clear indication on whether the central bank will pause the rate hikes going forward.

The US equities fell yesterday. The Dow Jones Industrial Average (33,414) fell 0.8 per cent. It has room to test 33,300-33,250 in the near-term. Thereafter it can bounce back.

In Asia, Kospi (2.495) is down 0.2 per cent. Other major indices are up. Hang Seng (19,899), up 1 per cent is the outperformer.

Nifty 50 Futures

Nifty 50 May Futures (18,185) is up 0.2 per cent. Immediate support is at 18,160. If it manages to sustain above this support and breaks above 18,200, a rise to 18,250 and higher levels is possible.

Failure to breach 18,200 can continue to keep it in a narrow range of 18,100-18,200 for some more time.

Trading Strategy

Traders can go long on a break above 18,200. Keep the stop-loss at 18,180. Trail the stop-loss up to 18,215 as soon as the contract moves up to 18,225. Move the stop-loss further up to 18,230 when the contract touches 18,240. Exit the long positions at 18,250.

Supports: 18,160, 18,100

Resistances: 18,200, 18,250

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