Nifty 50 May Futures (22,800)
Nifty 50 is managing to sustain higher. But the price action on the charts indicate that the index lacks strong follow-through buying. It made a high of 22,794.70 and has come down from there. Nifty is currently trading at 22,685, up 0.15 per cent.
Nifty 50 outlook
As mentioned above Nifty has been struggling to get a strong follow-through rise to breach 22,800. Intraday resistance is at 22,710. Failure to rise above this resistance can drag the Nifty down to 22,630 or 22,570 during the day.
From a big picture, Nifty has to surpass, 22,800 decisively to gain bullish momentum. Only in that case, a test of 23,000 will come into the picture. For now, 22,570-22,800 can be the near-term trading range.
Nifty 50 Futures
The Nifty 50 May Futures (22,800) is up 0.12 per cent. The contract spiked to a high of 22,888 and has come down from there. Failure to rise back from here can drag the contract down to 22,750 and 22,700-22,680 during the day.
The level of 22,680 is an important support. A break below it will be bearish for the contract. Such a break can drag the Nifty 50 May Futures contract down to 22,600 and even 22,500 in the near-term.
On the other hand, a bounce from around 22,700 can take the contract up towards 22,850-22,900 again.
Trade Strategy
Considering the risk-reward ratio, we suggest traders to stay out of the market. See what happens to the support at 22,700 and how the market closes for the week today. Trades can be taken accordingly next week.
Supports: 22,700, 22,600
Resistances: 22,900, 23,000