Nifty April futures (8,574)
The Nifty futures extended its bullish momentum with a positive open at 8,582 levels. However, the contract turned volatile and it marked an intra-day high at 8,589 levels and a low at 8,551 levels. The contract is trading sideways in a band between a key support and resistance level at 8,550 and 8,600 respectively.
A strong break above or below this sideways band would give a clear trading signal or directional move.
Traders with a short-term perspective should tread with caution as long as the contract trades in the 8,550 to 8,600 zone. A strong rally above key resistance at 8,600 will be a cue for initiating a long position with a tight stop-loss.
The contract can trend to 8,625 and then to 8,650 levels in the short-term. However, a downward break out of 8,550 levels will bring forth selling pressure and pull the contract down to 8,530 or 8,500 in the near term.
Strategy: Go long only on a strong rally above 8,600
Supports: 8,550 and 8,530
Resistances: 8,625 and 8,650