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Nifty 50 May Futures (10,672)
The Nifty and the Sensex began the week on a positive note with a gap-up open. Witnessing buying interest, both the benchmark indices continue to trend northwards. The market breadth of the Nifty index is biased towards advances. Strong gains from the mid- and small-cap indices which have gained more than 1 per cent, also support the current market rally. The Nifty May futures contract started the session with a gap-up open at 10,629 and extended it up move. The contract breached a key resistance at 10,650 and rallied higher to mark an intra-day high at 10,685 levels. The contract is marginally trading at a discount to the underlying Nifty index. However, the near-term outlook is bullish for the contract. Traders can make use of intra-day dips to buy the contract while maintaining a fixed stop-loss at 10,640 levels. Continuation of the up move can encounter resistance at 10,700. A decisive breakthrough of this barrier can take the contract higher to 10,725 and 10,750 levels. On the other hand, supports are placed 10,650 and 10,630 levels. An emphatic plunge below 10,630 will mar the bullish outlook and pull the contract down to 10,600. Next supports are at 10,575 and 10,550 levels.
Strategy : Buy in dips with a fixed stop-loss at 10,640.
Supports : 10,650 and 10,630
Resistances : 10,700 and 10,725
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