Technical Analysis

The Nifty Call: Nifty 50 April Futures (14,609)

Yoganand D | Updated on March 26, 2021

BL Research Bureau

 

Taking cues from the bullish Asian markets, the Sensex and the Nifty 50 started the session with a gap-up open and continued to trend upwards. The Nikkei 225 gained 1.5 per cent to 29,176 and Hang Seng index advanced 1.6 per cent to 28.351 levels in today's session. The Sensex and the Nifty 50 have surged 1.4 per cent and 1.5 per cent respectively. The market breadth of the Nifty 50 is biased towards advances. As the markets rally, the India VIX has dropped, it has slumped 6 per cent indicating decrease in volatility. The Nifty mid and small-cap indices have climbed 1.6 per cent and 1.2 per cent respectively. All the sectoral indices are featuring in the positive territory. The Nifty metal index is the top gainer that has advanced 3 per cent followed by Nifty FMCG and auto, both have advanced 1.7 per cent each.

The Nifty April month contract has begun the session with a gap-up open at 14,555 and continues to trend upwards. It has surpassed a resistance at 14,600 levels. The key support at 14,500 is providing base for the contract. The contract is trading with a high premium of about 90 points to the underling Nifty 50 index, needs an attention. The near-term outlook stays positive as long as the contract trades above 14,550 levels. Traders can buy the contract on dips with a stop-loss at 14,550 levels. A strong rally above the immediate resistance level of 14,650 can take the contract higher to 14,675 and 14,700 levels. Immediate supports are at 14,600 and 14,550 levels. Key supports thereafter at 14,525 and 14,500 levels.

Strategy: Buy on dips with a stop-loss at 14,550 levels

Supports: 14,550 and 14,525

Resistances: 14,650 and 14,675

Published on March 26, 2021

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