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Sensex and Nifty 50 are trading in green today while most of the Asian indices are in the red. Sensex is trading at 58,880 and is up 0.26 per cent. Nifty is up 0.16 per cent and is currently trading at 17,547. The Indian indices continue to outperform their global peers.
In Asia, Nikkei 225, Shanghai Composite, Hang Seng Index are all down in the range of between 0.5 per cent and 0.9 per cent today. Sensex and Nifty have resistances coming up at 59,000-59,100 and 17,650, respectively. The price action at these hurdles will need a close watch to see if the indices are reversing lower or not.
In the US overnight the Dow Jones Industrial Average had bounced back well and closed at 34,814.39, up 0.68 per cent. The index is getting strong support near 34,500 and can rise to 35,000-35,250 in the coming days. The Dow will have to rise past 35,250 decisively to strengthen the bullish momentum and bring back the chances of seeing 35,800-36,000 levels on the upside into the picture.
Futures: The Nifty 50 September Futures contract is trading slightly lower at 17,530 compared to yesterday’s close of 17,535. The contract seems to be facing resistance in the 17,550-17,565 region. As long as the contract trades below this resistance zone, an intraday dip to 17,500 cannot be ruled out.
If the contract manages to bounce from 17,500 a rise to 17,550-17,565 can be seen again. It will also keep the chances high of the contract breaking above 17,565 and rising to 17,600-17,650 in the coming sessions.
Traders can wait for dips and go long if the contract bounces-back from 17,500. Stop-loss can be kept at 17,470 for the target of 17,560. Trail the stop-loss to 17,515 as soon as the contract moves up to 17,540. In case if the contract breaks below 17,500, the fall can extend upto 17,460-17,440 today.
- Strategy: Wait for dips and go long on a bounce from 17,500. Keep the stop-loss at 17,470. Take profit at 17,560. Trail stop-loss to 17,515 as soon as the market moves up to 17,540.
- Supports: 17,500 and 17,460.
- Resistances: 17,565 and 17,600.
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