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Nifty 50 is trading flat. The index witnessed a strong bounce from the low of 22,054 on Thursday. This indicates the presence of strong buyers at lower levels. The index is currently trading at 22,399, marginally down by 0.03 per cent. The advances/decline ratio is at 21:29. This is slightly inclined towards bearishness. But as it happened on Thursday, strong buyers could emerge at lower levels. We will have to wait and see.
Nifty 50 Outlook
Good intraday support is around 22,300. A test of this support during the day cannot be ruled out, but we expect it to hold. A fresh rise from around 22,300 can take the index up to 22,400-22,500 in the next few sessions.
The bullish view will get negated only if the index declines below 22,300. In that case, a fall to 22,200-22,150 is possible.
Global indices
In Asia, barring the Hang Seng (19,433, up 0.29 per cent), other major indices are in red. Kospi (2,728) is down 0.9 per cent. Nikkei 225 (38,799) and Shanghai Composite (3,119) are down 0.3 and 0.1 per cent respectively.
The Dow Jones Industrial Average (38,869.38) was down 0.1 per cent respectively. This index touched a high of 40,051.05 and has come down from there. A sustained rise above 40,000 is needed to take the index up to 40,200-40,300. Else the Dow Jones can fall back to 39,500 in the coming sessions.
Nifty 50 Futures
The Nifty 50 May Futures (22,484) is up 0.14 per cent. Intraday resistance is at 22,520. A break above it can take the contract up to 22,700 in the coming sessions. Support is around 22,400. The outlook will turn negative only if the contract declines below 22,400. If that happens, then the Nifty 50 May Futures contract can fall to 22,200.
Trade Strategy
Traders can go long on a break above 22,520. Keep the stop-loss at 22,480. Trail the stop-loss up to 22,540 as soon as the contract moves up to 22,560. Move the stop-loss further up to 22,590 when the contract touches 22,610 on the upside. Exit the longs at 22,640.
Supports: 22,400, 22,200
Resistances: 22,520, 22,700
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