Comments
Nifty 50 has moved up further. After a high of 22,447, it has dipped slightly to currently trade at 22,404, up 0.3 per cent. The advance-decline ratio is at 36:13. This is positive.
Nifty 50 index outlook
Although the index has been moving up since Monday, it seems to lack strength. So, caution is needed rather than a bullish move. Key intraday support is in the 22,350-22,300 region. We can expect the Nifty to test this support zone during the day. A bounce from the 22,350-22,300 region can take the Nifty up to 22,450-22,500 in the coming sessions.
The index will come under pressure if it declines below 22,300, and could fall to 22,200 and lower.
Global indices
In Asia, Shanghai Composite (3,032) is down 0.4 per cent. Other major indices are in green. Hang Seng (16,782) is up 1.64 per cent. Nikkei 225 (37,621) and Kospi (2,632) are up 0.5 and 0.13 per cent, respectively.
The Dow Jones Industrial Average (38,240) has risen well above the 38,100 resistance, minimising the likelihood of a fall to 37,200-37,000, as mentioned yesterday. A further rise can take the Dow Jones up to 38,700 in the next few days. The price action thereafter will need a close watch.
Nifty 50 Futures
The Nifty 50 April Futures (22,397) is up 0.18 per cent. Support is at 22,300. An intraday dip to test this support cannot be ruled out. As long as the contract stays above this support, the bias will remain positive. As such, a bounce from around 22,300 can take the Nifty 50 April Futures contract to 22,600 in a day or two.
If the contract declines below 22,300, it could see 22,150 on the downside.
Trade strategy
Traders can wait for dips to go long. Enter a long position at 22,320. Keep the stop-loss at 22,280. Trail the stop-loss up to 22,345 as soon as the contract moves up to 22,370. Move the stop-loss further up to 22,390 when the contract touches 22,410. Exit the long positions at 22,430.
Supports: 22,300, 22,150
Resistances: 22,530, 22,600
Comments
COMMENT NOW
