Nifty 50 April Futures (22,455)

Nifty 50 continues to move up gradually with less momentum. The index is currently trading at 22,444.50, up 0.34 per cent. The advances/declines ratio is at 42:8. This is positive and it indicates that more rise is possible during the day.

Nifty 50 index outlook

The outlook is positive. Nifty 50 can rise to 22,500-22,550 during the day. Immediate support is at 22,400. Below that, 22,350 is the next strong support. Nifty has to decline below 22,350 to negate the rise to 22,500-22,550. If such break happens, then Nifty can fall to 22,300 and lower.

Global indices

All major Asian indices are in green. Nikkei 225 (38,360) has surged over 2 per cent. Kospi (2,674) and Hang Seng (17,110) are up 1.98 and 1.67 per cent respectively.

The Dow Jones Industrial Average (38,503) continues to move up. It is heading up towards 38,700 in line with our expectation. A decisive break above 38,700 is needed to extend the current up move. Else, reversal can drag the Dow below 38,000 going forward.

Nifty 50 Futures

The Nifty 50 April Futures (22,455) is up 0.38 per cent. The contract has support at 22,430-22,400. There is room for the contract to rise to 22,550 during the day. A strong break above 22,550 can take the Nifty 50 April Futures contract upto 22,700 in a day or two.

The level of 22,350 is an important support. The contract will come under pressure only if it breaks below this support. Such a break can drag it down to 22,300 and lower.

Trade Strategy

Traders can go long now at 22,455. Accumulate on dips at 22,420. Keep a stop-loss at 22,380. Trail the stop-loss up to 22,470 as soon as the contract moves up to 22,495. Move the stop-loss further up to 22,505 when the contract touches 22,520. Exit the longs at 22,540.

Supports: 22,400, 22,350

Resistances: 22,550, 22,700

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