Nifty 50 April Futures (22,822)

Nifty 50 continues to move up. The outlook is bullish. The index is currently trading at 22,739, up 0.32 per cent.

Nifty 50 index outlook

The break and close above 22,530 is a positive. But there is resistance at 22,800 which will need a watch during the day. Failure to breach 22,800 can trigger a corrective fall to 22,650-22,600. However, the macro picture continue to remain bullish. A fresh rise again from around 22,600 and a subsequent break above 22,800 can take the Nifty up to 23,000 this week.

Global indices

Asian markets are trading mixed. Nikkei 225 (39,650) and Hang Seng (16,824) are up 0.75 per cent and 0.55 per cent, respectively. Kospi (2,714) and Shanghai Composite (3,042) are down 0.17 per cent and 0.15 per cent, respectively.

The Dow Jones Industrial Average (38,892.80) has failed to breach 39,000 and has come down from the high of 39,013. The price action indicates that the index lost a chance of strong follow-through buying above 39,000. This could keep the Dow Jones under pressure to test 38,500 on the downside. A break below 38,500 will open the doors for more fall.

Nifty 50 futures

The Nifty 50 April Futures (22,822) is up 0.33 per cent. The outlook is bullish. Intraday support is around 22,770. Below that 22,700-22,670 is the next key support zone. The contract can rise to 22,900 during the day. A strong break above 22,900 is needed to see the upmove extending towards 23,000 and higher. A reversal from around 22,900 can trigger a corrective fall to 22,750-22,700.

Trade strategy

Traders can wait for dips. Go long at 22,780. Keep the stop-loss at 22,740. Trail the stop-loss up to 22,810 as soon as the contract moves up to 22,840. Move the stop-loss further up to 22,845 when the contact touches 22,860. Exit the longs at 22,880.

Supports: 22,770, 22,700

Resistances: 22,900, 23,000