Nifty 50 September Futures (17,462)
BSE Sensex and NSE Nifty 50 are trading sharply lower. Both the indices are down over one per cent each. At the time of filing this report, Sensex was at 58,418, while Nifty was trading at 17,421.
The charts show that Nifty can extend the fall to 17,200 on a strong break below 17,400. Thereafter there are chances to see a bounce back next week.
The global equity markets continue to remain under pressure. The outcome of the US Federal Reserve meeting on Wednesday indicating more rate hikes in its next two meeting continue to weigh on the market sentiment.
All major Asian indices are trading in red. Nikkei 225 (27,153), Shanghai Composite (3,075), Hang Seng (17,994) and Kospi (2,292) are all down in the range of 0.6-1.65 per cent.
In the US, the Dow Jones Industrial Average (30,076.68) tested 30,000. It has room to fall further towards 29,500 and then can see a bounce from there.
The Nifty 50 September Futures (17,462) is down one per cent. The view is bearish. The contract can fall to 17,250 from here. Resistances are at 17,520 and 17,570. Any intermediate bounce can be capped at 17,520 or 17,570.
Traders can go short at current levels. Accumulate shorts on a rise at 17,510. Keep the stop-loss at 17,595.
Trail the stop-loss down to 17,420 as soon as the contract falls to 17,380. Move the stop-loss further down to 17,360 when the contract touches 17,320 on the downside. Book profits at 17,270.
The contract will have to see a sustained rise past 17,570 to ease the downside pressure.
Go short now and at 17,510. Keep the stop-loss at 17,595 for the target of 17,270. Trail the stop-loss down to 17,420 as soon as the contract falls to 17,380. Move the stop-loss further down to 17,360 when the contract touches 17,320 on the downside.
Supports: 17,400, 17,250
Resistances: 17,520, 17,570.