Technical Analysis

The Nifty Call: Nifty 50 April Futures (14,694)

Yoganand D | Updated on April 16, 2021

The near-term stance stays positive as long as the contract trades above 14,650 levels

BL Research Bureau

Taking cues from the positive Asian markets, the Sensex and the Nifty 50 started the session in green. The Hang Seng index is up by 0.6 per cent to 28,958 levels and Nikkei 225 index is marginally up by 0.14 per cent to 29,683 levels in today's session. After an initial dip the Sensex and the Nifty 50 have recovered and advanced about 0.4 per cent and 0.6 per cent respectively. The advance/decline ratio, that is the market breadth of the Nifty 50, is biased towards advances. The India VIX has declined 1.8 per cent to 20.5 levels signifying decrease in volatility. Both the Nifty mid and small-cap indices have gained about 1.4 per cent each. All the sectoral indices are trading in the positive territory. Buying interest is witnessed in the Nifty metal and auto which have jumped 2.15 per cent and 2 per cent respectively.

The April month index futures commenced the session on a positive note, opening at 14,605 against the previous close of 14,592. After marking an intraday low at 14,582 the contract bounced up, breaching the key resistances at 14,600 and then 14,650 levels. It has registered an intraday high at 14,718 levels. The near-term stance stays positive as long as the contract trades above 14,650 levels. Traders can make use of intraday dips to buy the contract while maintaining a stop-loss at 14,640 levels. A strong rally above 14,700 can take the contract higher to 14,730 and then to 14,750 levels. Next key resistances are at 14,780 and 14,800 levels. Key supports below 14,650 are placed at 14,625 and 14,600 levels. A strong fall below the vital base level of 14,600 can bring back selling interest and drag the contract down to 14,575 and then to 14,550 levels.

Strategy: Buy on dips with a fixed stop-loss at 14,640 levels

Supports: 14,650 and 14,625

Resistances: 14,700 and 14,730

Published on April 16, 2021

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