Nifty 50 and Sensex continues to move up. Nifty has risen well above 17,700. It is currently trading at 17,761, up 0.23 per cent. If this sustains, the chances are high for the Nifty to break the immediate resistance at 17,800. Such a break will pave way for a further rise to 17,900-18,000 in the coming days.
Global indices
In Asia, barring the Hang Seng (20,363, down 0.6 per cent) other major indices are in green today. Nikkei 225 (28,085), Kospi (2,554) and Shanghai Composite (3,329) are all up in the range of 0.25-0.6 per cent.
In the US, the Dow Jones Industrial Average (33,684) continues to move up. The bullish view of seeing a rise to 34,000 remains intact. As mentioned yesterday, 34,000 is a crucial resistance. The price action around it will need a close watch.
The US Consumer Price Index inflation data release is due today. If the inflation indicates a rise, then that could be negative for the equity markets.
Nifty 50 Futures
The Nifty 50 April futures (17,825) is up 0.22 per cent. The outlook is bullish. Support is at 17,780-17,770. As long as the contract trades above this support, the chances are high for it to rise to 17,900-17,950 in the coming sessions.
A fall to 17,700 will come into picture, if the Nifty 50 April futures contract declines below 17,770.
Trade strategy
Wait for dips and go long at 17,810. Accumulate at 17,790. Keep the stop-loss at 17,760. Trail the stop-loss up to 17,825 as soon as the contract moves up to 17,855. Move the stop-loss further up to 17,860 when the contract touches 17,875. Exit the long positions at 17,890.
Supports: 17,770, 17,700
Resistances: 17,870, 17,930