Nifty 50 is trading marginally higher. The index is at 15,983, up 0.28 per cent. The bias is inclined towards the downside. Unless the Nifty sees a sustained rise past 16,100, it will remain vulnerable for a fall today as well. Crucial support to watch is the 15,850-15,800 region which had held very well on Thursday. A strong break below 15,800 will be bearish going forward. Broadly 15,800-16,100 can be the trading range for now.
Global indices
In Asia, Nikkei 225 (26,813) and Kospi (2,327) are up 0.2 and 0.6 per cent, respectively. Shanghai Composite (3,273) and Hang Seng (20,503) are down 0.24 and -1.19 per cent respectively.
In the US, the Dow Jones Industrial Average (30,630, down 0.46 per cent) continues to move down. The view is bearish to see a fall to 30,000 and 29,500 in the coming days.
Nifty Futres
Traders can go short now and accumulate shorts at 16,015. Keep the stop-loss at 16,070. Trail the stop-loss down to 15,960 as soon as the contract moves down to 15,940. Move the stop-loss further down to 15,935 as soon as the contract touches 15,925 on the downside. Book profits at 15,920.
The chances of a fall to 15,900 will reduce if the contract breaks above 16,040. In that case an extended rise to 16,080-16,100 can be seen during the day.
Trading strategy
Go short now and at 16,010. Keep the stop-loss at 16,070 for the target of 15,920. Move the stop-loss further down to 15,935 as soon as the contract touches 15,925 on the downside.
Supports: 15,880 and 15,800
Resistance: 16,040 and 16.100
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