Nifty 50 April Futures (22,463)
Nifty 50 opened with a gap-down, but has managed to bounce back from its low. The index made an intraday low of 22,305.95 and has risen back well recovering all the loss. It is currently trading at 22,450, up 0.22 per cent. The advances/decline ratio is at 33:17 and it indicates a positive bias.
Nifty 50 index outlook
The bounce today has happened from an important support level of 22,300. Above this there is another support at 22,350. Immediate resistance is at 22,470. A break above it can take the Nifty up to 22,530-22,550 during the day.
So broadly we expect the Nifty to oscillate between 22,300 and 22,550. A breakout on either side of these levels will then determine the next move.
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A decisive break above 22,550 is needed to boost the bullish momentum. Such a break can take the Nifty up to 22,800 and higher levels in the short-term.
On the other hand, a break below 22,300 can drag it down to 22,150 and 22,000 in the coming sessions.
Global indices
Asian markets are trading mixed. Nikkei 225 (37,718) and Kospi (2,643) are down over a per cent each. On the other hand, Hang Seng (17,295) and Shanghai Composite (3,049) are up 0.55 and 0.17 per cent respectively.
The Dow Jones Industrial Average (38,460.92) was down 0.11 per cent on Wednesday. The resistance around 38,700 seems to be holding well for now. Failure to rise past this hurdle can drag the index down to 38,200-38,000 and even lower in the coming days.
Nifty 50 Futures
The Nifty 50 April Futures (22,463) contract is up 0.33 per cent. The contract has support at 22,430. Below that a much lower support is around 22,330. This level can be tested if the contract declines below 22,430 during the day. If the contract manages to sustain above 22,430, it can move up to 22,550 during the day. A further break above 22,550 can take the contract further up to 22,650-22,700 in the coming sessions.
Broadly, it is a wait and watch situation now.
Trade Strategy
Since the underlying index has been range bound, we suggest traders to stay out of the market today.
Supports: 22,430, 22,330
Resistances: 22,550, 22,700