Sensex and Nifty 50 have dropped after opening with a gap-up. Both indices are marginally up as of now. Sensex is trading at 62,005 and Nifty at 18,327.
Intraday support for Nifty is in the 18,300-18,290 region. If Nifty manages to sustain above this support, a rise to 18,400 is possible today. That will keep the doors open for 18,500 eventually in the coming days.
Global indices
Asian indices are trading mixed. Nikkei 225 (29,140) and Kospi (2,503) are in green while the Shanghai Composite (3,315) and Hang Seng (19,721) are in red.
In the US, the Dow Jones Industrial Average (33,531) tumbled to a low of 33,239 on Wednesday. However, it managed to bounce back sharply and close the day marginally lower. The strong bounce from the low leaves the bias positive. So that keeps the chance high for the Dow to break the resistance at 33,800. This, in turn, can take the index up to 34,000 and even 34,500 in the coming days.
Nifty 50 Futures
The Nifty 50 May Futures (18,360) is trading slightly higher. Intraday support is in the 18,330-18,300 region. We expect the contract to sustain above this support zone and rise to 18,400 during the day. A break above 18,400 will boost the bullish momentum and pave way for a test of 18,500.
The contract will come under pressure only on a break below 18,300, and then a fall to 18,250-18,230 is possible.
Trade strategy
Traders can wait for dips and go long at 18,340. Accumulate at 18,310. Keep the stop-loss at 18,275. Trail the stop-loss up to 18,355 as soon as the contract moves up to 18,375. Move the stop-loss further up to 18,380 when the Nifty 50 May Futures contract touches 18,395. Exit the longs at 18,430.
Supports: 18,330, 18,300
Resistances: 18,400, 18,500