The Nifty call: Near term view positive

Nifty 50 April Futures (10,609)

Following a negative start due to bearish Asian markets, the Nifty and the Sensex have gathered momentum and entered the positive territory. The Nikkei 225 is down 74 points or 0.3 per cent to 22,088 and Hang Seng index has fallen 96 points or 0.3 per cent to 30,321.

The Nifty April month contract open the session at 10,579 levels and marked an intra-day low at 10,551. Taking support at around 10,550, the contract reversed higher. The intra-day trend has been up since the low at 10,551.

While trending up, it has breached key resistances at 10,575 and 10,600. The contract has recorded an intra-day high at 10,620 and faces resistance at 10,625. A strong rally above this resistance can take the contract northwards to 10,650. Subsequent resistances are at 10,675 and 10,700. Conversely, a slump below 10,600 can 10,590 can bring back selling pressure and pull the contract down to 10,575. Further decline below 10,575 will alter the near-term uptrend and drag the contract down to 10,550 and 10,530 levels.

Traders with a near-term view can make use of intra-day dips to buy the contact as long as it trades above 10,590 levels with a fixed stop-loss at 10,580 levels. The contract can test resistance at 10,625 levels.

Strategy: Near-term view stays positive as long as the contract trades above 10,590 levels. Buy in dips with a fixed stop-loss at 10,580.

Supports: 10,590 and 10,575

Resistances: 10,625 and 10,650

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