The Indian benchmark indices, Nifty 50 (17,840) and Sensex (60,420), after opening the day flat, have now moved up by 0.2 per cent for the day. Market breadth is supporting the bullish bias i.e., the advance-decline ratio of Nifty 50 stands at 30-20.

Indicating a broad-based buying, all the mid- and small-cap indices have rallied so far today. Likewise, most of the sectoral indices have advanced. Nifty Realty is the leader by gaining 1.1 per cent whereas among the very few indices that are down, Nifty Pharma, down by 0.4 per cent, has lost the most.

The domestic market appears bullish despite the mixed cues from the Asian equity market. Among the major indices, Nikkei 225 (28,400) is flat; KOSPI (2,490) is up by 0.2 per cent whereas Hang Seng (19,720) and ASX 200 (7,275) are down by 0.2 and 0.5 per cent, respectively.

Nifty 50 futures

The April futures of Nifty 50 index began today’s session lower at 17,791 versus yesterday’s close of 17,815. However, it has recovered and is currently hovering around 17,830.

The price action is positive, and it indicates that the contract is likely to move towards 17,900. If this level is breached, it can extend the upside to 18,000.

On the other hand, if there is a decline from here, it can find support at 17,780 and 17,750. Subsequent support is at 17,700.

But note that today is April series expiry and thus, there is also a chance for the index to move in a sideways range. So, it is recommended to wait for some confirmation of a trend before pulling the trigger.

Trading strategy

Although the sentiment appears positive, the uncertainty is higher with respect to intraday trend as April contracts expire today.

Therefore, traders can stay away for now. Take fresh longs with stop-loss at 17,850 if Nifty futures break out of 17,900. Book profits at 18,000.

Supports: 17,780 and 17,750

Resistance: 17,900 and 18,000

Related Topics