Some recovery are seen across the global equities. The Bank of England announced on Wednesday that they will start buying long-dated bonds. This has given some relief to the markets and the indices across the globe has seen a bounce.

The Indian benchmark indices have also risen today taking cues from the global markets. The Sensex and Nifty 50 are up about 0.5 per cent each. Sensex is trading at 56,873 and Nifty is at 16,946.

Nifty made an intraday high of 17,025 and has been coming down from there. The price action as of now hints that the index is lacking strong follow-through rise above 17,000. Inability to see a sustained rise above 17,000 will keep the Nifty under pressure to test 16,800 again.

Global indices

All major Asian indices are in green. Hang Seng (17,477) and Kospi (2,196) are up the most by 1.25 and 1.29 per cent respectively. Shanghai Composite (2,053) is up 0.27 percent and Nikkei 225 (26,429) is up 0.97 per cent.

In the US, the Dow Jones Industrial Average (29,683) has risen back sharply. The support at 28,900 that we have been mentioning since the beginning of the week has held very well. However, the Dow will have to rise past 30,000 decisively to avoid a fall-back again. So the price action for the rest of the week will need a close watch.

Nifty Futures

The Nifty 50 September Futures (16,980) made a high of 17,058 and has come-off from there. It is currently up 0.75 per cent. Resistance is at 17,060 which has to be broken decisively to take the contract up to 17,200. Else it can remain vulnerable to revisit 16,800 levels again.

Although on the chart, the price action looks more inclined towards seeing a fall to 16,800, the chances of a strong bounce back also cannot be ruled out. We suggest traders to stay out of the market and see how it settles down today. Based on that, trades can be done tomorrow.

Trading Strategy: Stay out of the market.

Supports: 16,800, 16,700

Resistances: 17,060, 17,200

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