Nifty 50 April Futures (17,365)
BSE Sensex and NSE Nifty have opened the session with a wide gap-up and are maintaining the momentum. Both the indices are up over one per cent each.
While BSE Sensex is trading at 58,660, NSE Nifty is around 17,280. Nifty50 has broken the 16,800-17,200 range on the upside. If it manages to sustain above 17,200, it can test the 17,400-17,600 range in the next couple of weeks.
Global indices
All Asian major indices are in the green. Nikkei 225 (28,088), Kospi (2,479), Hang Seng (20,480) and Shanghai Composite (3,268) are all up in the range of 0.2 to 1.1 per cent.
In the US, the Dow Jones Industrial Average (32,859.03) rose well above the intermediate resistance at 32,500. A further rise from here can take the index up to 33,800-34,000 in the next couple of weeks.
Nifty 50 Futures
The Nifty 50 April Futures (17,365) is up about 0.9 per cent and the outlook for the contract is bullish. But there might not be much room left for further rise from here for the day. Resistance is at 17,420 which might hold well for today. Supports are at 17,310 and 17,250. An intraday dip to 17,310 cannot be ruled out. However, we can expect the contract to bounce-back again from that level. As a result, 17,300-17,420 is expected to be the trading range for today.
A strong rise past 17,420 can take the contract up to 17,700. But, this rise may happen next week.
Trading strategy
Traders can wait for dips and go long at 17,320. Keep the stop-loss at 17,290. Trail the stop-loss up to 17,335 as soon as the contract moves up to 17,355. Move the stop-loss further up to 17,360 when the contract touches 17,375. Exit the longs at 17,390.
Supports: 17,310, 17,250
Resistances: 17,420, 17,510