Sensex and Nifty 50 are trading marginally lower. Both indices are down about 0.2 per cent each. Sensex is trading at 68,301 and Nifty at 17,788. Nifty has to see a sustained rise above 17,800 to rise to 18,000. Failure to breach 17,800 can trigger a corrective dip to 17,700-17,650 in the near term. However, the broader picture is positive with strong support in the 17,650-17,600 region. As long as the Nifty 50 trades above 17,600, the outlook is bullish to break 17,800 eventually and rise to 18,000.

Global indices

Asian markets are mixed today. Nikkei 225 (28,124) and Shanghai Composite (3,328) are marginally up while Kospi ()2,550) and Hang Seng (20,209) are down.

In the US, the Dow Jones Industrial Average (33,646) has declined slightly on Wednesday. However, it has strong support around 33,3000, which can limit the downside. The overall outlook is bullish to see 34,000 in the coming days. The price action thereafter is very important to watch.

Nifty 50 futures

The Nifty 50 April Futures (17,842) is down about 0.1 per cent. Intraday resistance is at 17,850.  Failure to rise past 17,850 can drag the contract down to 17,800-17,780 during the day. A further break below 17,780 will increase the downside pressure. In that case, the contract can extend the fall to 17,700.

A strong rise past 17,850 will now be needed to see a rise to 17,900 and higher levels.

Also read

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(PIC: Canva)

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Trade strategy

Considering the risk-reward ratio, we suggest traders to stay out of the market today.

Supports: 17,780, 17,700

Resistance: 17,850, 17,800