Nifty 50 and Sensex continue to move up. Both the indices opened with a gap-up today and are trading higher. Nifty (18,388) is up 0.4 per cent and Sensex (62,155) is up 0.31 per cent.

The broader outlook is bullish. Nifty has risen well above the key resistance level of 18,300. Now it will have the potential to target 18,500-18,600 in the coming days.

The level of 18,300 will act as good support. The index will come under pressure for a fall to 18,200-18,100 again only if it declines below 18,300.

Global indices

Asian indices are mixed. Kospi (2,569) is up 0.48 per cent while Nikkei 225 (30,842), Hang Seng (19,563), and Shanghai Composite (3,277) are all down in the range of 0.6-0.8 per cent.

In the US, the Dow Jones Industrial Average (33,286) fell yesterday. It can come down to 33,000 in the near term. The chances are looking high for it to break below 33,000 and fall to 32,700 in the short term.

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The price action around 33,000 will need a close watch now. The Dow has to breach 33,800 to become bullish to see 34,000-34,300.

Nifty 50 Futures

The Nifty 50 May Futures (18,402) is up 0.37 per cent. The outlook is bullish. The contract can rise to 18,450 during the day. The level of 18,450 is a strong intraday resistance that can hold today.

However, 18,450 can eventually be broken in the coming days. As such the contract has the potential to target 18,600 this week.

Support is at 18,350. A break below it can take the Nifty 50 May Futures contract down to 18,250. But such a fall is less probable.

Trade strategy

Traders can wait for dips and go long at 18,380 and 18,360. Keep the stop-loss at 18,335.

Trail the stop-loss up to 18,395 as soon as the contract moves up to 18,415. Move the stop-loss further up to 18,410 when the contract touches 18,430. Exit the longs at 18,450.

  • Supports: 18,350, 18,300.
  • Resistances: 18,450, 18,500.
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