Comments
Indian benchmark indices are trading marginally higher. Sensex is at 55,580, up 0.38 per cent, and Nifty is at 16,568, up 0.28 per cent. However, both indices will have to rise past their near-term resistance to gain momentum for a strong rise. Resistance for the Sensex is at 56,000 and for the Nifty at 16,700. Broadly, 55,000-56,000 on the Sensex and 16,400-16,700 on the Nifty will be the trading range for now. A breakout on either side of this range will give a clear idea on the next direction.
In Asia, barring the Shanghai Composite Index (3,185, up 0.11 per cent), other major indices are in the red. Nikkei 225 (27,430), Hang Seng (20,960), and Kospi (2,655) are down in the range of 0.1 to 1.6 per cent.
In the US, the Dow Jones Industrial Average was at 32,813, down 0.54 per cent, yesterday. It has to sustain above 32,500 to avoid a steeper fall. The price action in the coming days will need a close watch.
Futures: The Nifty 50 June (16,520) Futures is up marginally. The contract has strong resistance in the broad 16,600-16,700 region over the last couple of days. Support is in the 16,420-16,400 region. On the charts, the chances appear high to break below 16,400 and drag it to 16,300-16,250. Traders with high-risk appetite can go short at current levels and also accumulate at 16,560. Keep the stop-loss at 16,620. Trail the stop-loss down to 16,470 as soon as the contract falls to 16,430. Move the stop-loss further down to 16,390 as soon as the contract touches 16,360. Book profits at 16,320.
The outlook will turn bullish only on a strong break above 16,700. Such a break will take the contract up to 16,800 and even 17,000 levels in the coming days. Trail the stop-loss down to 16,470 as soon as the contract falls to 16,430. Move the stop-loss further down to 16,390 as soon as the contract touches 16,360
Supports: 16,400 and 15,300
Resistances: 16,600 and 16,700
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.