Taking positive cues from the Asian market, the Indian benchmark indices opened with a considerable gap-up today. Post opening, both the Nifty 50 (16,030) and the Sensex (53,630) rallied and are now up by about 1.4 per cent each. Among the Asian majors, Nikkei 225, ASX 200, Hang Seng and KOSPI are up in the range of 2-2.3 per cent.

Substantiating the bullish bias, the advance/decline ratio of the Nifty 50 index is currently at 45-5 and all the mid- and small-cap indices are up between 1.8 and 2.8 per cent. Moreover, all the sectoral indices are in the green led by the Nifty Auto, up by 3.7 per cent. This is followed by the Nifty Media index, up by 3 per cent. Therefore, the buying looks broad-based.

Futures: The May futures of the Nifty 50 index opened today’s session higher at 15,969 versus yesterday’s close of 15,810. It then rallied past 16,000-mark and made an intraday high of 16,069 before moderating to the current level of 16,025. The likelihood of a rally from here is high where the futures is expected to touch 16,200. A breach of this level can lift it towards 16,385. On the downside, 15,900 can act as a strong support and an intraday dip below this level is less likely.

Considering the above factors, traders can go long at the current level of 16,025 and accumulate more when the contract moderates to 15,950. Keep stop-loss at 15,880. When the contract touches 16,200, liquidate one-third of the longs and tighten the stop-loss to 16,080. Liquidate the remaining at 16,350.

Strategy: Go long at the current level of 16,025 and accumulate more hen the contract moderates to 15,950. Keep stop-loss at 15,880. When the contract touches 16,200, liquidate one-third of the longs and tighten the stop-loss to 16,080. Liquidate the remaining at 16,350.

Supports: 16,000 and 15,900

Resistances: 16,200 and 16,385

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