Nifty May Futures (8,430)
The Nifty futures contract rose sharply today and is trading on a strong note. A break above the psychological 8,400 level has eased the pressure caused by a sudden reversal and sell-off witnessed in the last few trading hours on Tuesday.
The contract is currently range-bound between 8,420 and 8,450; there is a possibility for an intra-day dip to 8,400. However, the overall outlook is bullish and reversal from 8,400 on the high side looks more likely. Such a reversal can take the contract higher to 8,450 and 8,470 during the day.
Traders can wait on the sidelines now. Wait for an intra-day dip and go long at 8,410 with a stop-loss at 8,375 for the target of 8,460.
Supports for the contract are at 8,400 and 8,380. The outlook will turn negative only if the contract declines below 8,380. The next targets will be 8,350 and 8,320.
Strategy: Go long on dips at 8,410 with a stop-loss at 8,375
Supports : 8,400, 8,380
Resistances: 8,450, 8,470