The Indian benchmark indices are edging lower after opening the day with a gap-up. The inability to keep their gains at a time when other global indices are holding higher indicates the inherent weakness of the domestic indices.

Both the Sensex and Nifty 50 have come off their intraday highs, , and are now trading in the red. Nifty is at 15,616, down 0.50 per cent, and Sensex is at 52,350, down 0.36 per cent. The bias remains bearish. A decisive close below 15,645, which looks likely to happen, can take the Nifty down to 15,000 next week.

The global indices rose after the US Federal Reserve raised the interest rates by 75-basis points in line with the market expectations. The Dow Jones Industrial Average was up 1 per cent yesterday. However, it remains to be seen if the firm trend remains intact today.

In Asia, the Nikkei 225 (26,454) and Kospi (2,452) are up, while the Shanghai Composite (3,285) and the Hang Seng (21,019) are trading in red.

Futures: The Nifty 50 June (15,612) futures is down 0.64 per cent. It has declined sharply below the key support level of 15,660. A fall to 15,500, which could happen in the coming sessions, will take the contract down to 15,000 in the coming days.

Traders can go short now and on a rise at 15,650. Keep the stop-loss at 15,720. Trail it down to 15,590 as soon as the contract falls to 15,520. Move the stop-loss further down to 15,510 when it touches 15,480.  Book profits at 15,450.

The contract will have to make a strong close above 15,660 today to ease the downside pressure and rise in the coming days. But given the sharp fall since the morning, the chances of a close above 15,660 look less probable.

Trading Strategy: Go short now and at 15,650. Keep the stop-loss at 15,720 for the target of 15,450. Trail the stop-loss down to 15,590 as soon as the contract falls to 15,520. Move the stop-loss further down to 15,510 as soon the contract touches 15,480 on the downside.  

Supports: 15,500 and 15,300

Resistances: 15,660 and 15,800

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