Nifty 50 April Futures (22,210)

Nifty 50 opened with a wide gap-up but has failed to sustain. The index made an intraday high of 22,337 and has come down from there. It is currently trading at 22,245, up 0.44 per cent. The advance/decline ratio is at 45:5. This is positive. But need to see if it is sustaining or not.

Nifty 50 index outlook

Cluster of resistances are there in the broad 22,350-22,500 region. Support is in the 22,150-22,100 region. So broadly, 22,100 to 22,350 can be the trading range for the day. A breakout on either side of this range will then determine the next move.

A break below 22,100 will be bearish to see 21,900-21,800 again this week. On the other hand, a break above 21,350 can take the Nifty up to 21,500. A decisive break above 21,500 will only turn the broader outlook bullish again.

Global indices

In Asia, barring the Shanghai Composite (3,050.89, down 0.47 per cent), other major indices are in green. Hang Seng (16,506) has surged 1.74 per cent. Nikkei 225 (37,234) and Kospi (2,614) are up 0.45 and 0.88 per cent respectively.

In the US, the Dow Jones Industrial Average (37,986.40) has moved up on Friday. But broadly, the index has been in sideways range between 37,600 and 38,100. The bias is bearish to break 37,600 and fall to 37,200-37,000 this week.

Nifty 50 Futures

The Nifty 50 April Futures (22,210) is up 0.38 per cent. The contract has come down from the high of 22,272. An intraday fall to 22,150 looks likely now. The price action thereafter will need a close watch.

A bounce from around 22,150 can take the index up to 22,300-22,350 in the coming sessions. On the other hand, a break below 22,150 will be bearish to see 22,000 and 21,900 in the coming sessions.

Trade Strategy

Considering the risk/reward ratio and also the chances for going either way from here, we suggest traders to stay out of the market today.

Supports: 22,150, 22,000

Resistances: 22,350, 22,500