Nifty 50 May Futures (9,412)
The Nifty 50 futures contract is trading on a positive note ahead of the expiry today. The contract opened with a 20-point gap-up at 9,384 and surged to an intraday high of 9,424. A key trendline as well as a moving average resistance on the intraday chart at 9,425 has halted this rally and the contract has come off slightly from the day's high. The inability to move past 9,425 can see the contract breaking below 9,400 during the day. Such a break will increase the likelihood of the contract falling to 9,385 or even 9,350 once again.
On the other hand, if the index futures manages to breach above 9,425 decisively, it can target 9,450 initially. A further break above 9,450 can take the contract higher to 9,475 and 9,500 thereafter.
Short-term traders with high risk appetite can go long on a strong break above 9,425, with a tight stop-loss at 9,415 for the target of 9,450. Revise the stop-loss higher to 9,430 as soon as the contract moves up to 9,440.
Strategy: Go long on a break above 9,425 with a tight stop-loss at 9,415
Supports: 9,400, 9,385
Resistances: 9,425, 9,450