Nifty 50 April Futures (10,584)

Domestic benchmark indices, the Nifty as well as Sensex, started the session with a gap-up open, taking cues from positive Asian markets.

The Nikkei 225 is up 0.86 per cent at 22,278 and Hang Seng index has gained 0.9 per cent to 30,533 levels in today's session.

Following a narrow sideways movement, the Nifty and Sensex began to experience selling pressure and started to decline. While the Sensex managed to trade in positive territory, the Nifty has slipped into the negative territory recently and has bounced back.

The market breadth of the Nifty index is almost at break-even. The Nifty futures contract started the session in the red, opening at 10,582 levels but the contract reversed higher and recorded an intra-day high at 10,599 initially.

Key resistance at 10,600 capped the upside for the contract and it fell to mark an intra-day low at 10,568. As long as the contract trades sideways in the band between 10,570 and 10,600, traders should tread with caution.

Fresh long positions can be initiated with a fixed stop-loss on a strong rally above 10,600. The near-term targets are 10,625 and 10,650. On the other hand, key supports below 10,570 are placed at 10,550 and 10,525 levels.

Strategy : Go long on a strong rally above 10,600 with a fixed stop-loss at 10,590 levels.

Supports: 10,570 and 10,550

Resistances : 10,600 and 10,625

 

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