Nifty 50 May futures (22,353)

Nifty 50 has recovered after falling on Wednesday. However, this recovery seems to lack strength. The index made an intraday high of 22,330 and has come down, giving up some of the gains. It is currently trading at 22,256, up 0.26 per cent. The advances/ declines ratio at 24:26 is giving mixed signals. So, we may have to watch the price action closely to get clarity on the strength of the recovery.

Nifty 50 outlook

The intraday outlook is mixed. The resistance at 22,300 is holding well as of now. Support is in the 22,150-22,100 region. So broadly, 22,100-22,300 can be the trading range for the day. A decisive break-out on either side of this range will give a clear cue on the next move.

A sustained break above 22,300 can take the index up to 22,400-22,500. On the other hand, a decisive break below 22,100 can drag the Nifty down to 21,900 in the coming sessions.

Global indices

Asian markets are all in the green following the strong overnight rise in the US markets. Hang Seng (19,376) has surged about 1.6 per cent. Nikkei 225 (38,708), Kospi (2,748) and Shanghai Composite (3,134) are all up in the range of 0.5 to 0.8 per cent.

The Dow Jones Industrial Average (39,908) rose 0.88 per cent on Wednesday. The soft inflation numbers aided the index to move up. It is now poised in the key 39,900-40,000 zone. It is important for it breach 40,000 to move higher. Else, the index could fall back towards 39,500 and lower.

Nifty 50 futures

The Nifty May futures (22,353) is up 0.3 per cent. The contract touched 22,400 and has come down from there. Support is at 22,200 and resistance is at 22,400. So, 22,200-22,400 is the trading range to look out for.

A bullish breakout above 22,400 can take the contract up to 22,500 during the day. On the other hand, a break below 22,200 will take the contract down to 22,100 and even 22,000.

Trading strategy

Since the market seems to be range-bound, we suggest traders stay out of the market. Wait for the range break-out and then take trades accordingly.

Supports: 22,200, 22,100

Resistances: 22,400, 22,500

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