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The Nifty 50 June Futures (16,420):
The Indian benchmark indices are trading in red. Both the Sensex and Nifty 50 have declined and are trading just above their crucial supports. Sensex at 55,120.57, down 1 per cent is poised just above the key support level of 55,000. Nifty is at 16,415.70 and is trading down 0.93 per cent, just above the decisive support at 16,400. It is important for these indices to hold above the above-mentioned supports. A break below it can drag the Sensex down to 54,000-53,500. Nifty on the other hand can fall to 16,200 on a break below 16,400.
On the chart, the bias is negative for the indices to break their immediate supports and fall in the coming sessions.
Asian markets are trading mixed. Nikkei 225 (28,031) and Shanghai Composite (3,244) are up today while Hang Seng (21,539) and Kospi (2,635) are trading down. In the US, the Dow Jones Industrial Average (32,915) has closed marginally up. It is oscillating within a sideways range for more than a week.
Futures: The Nifty 50 June (16,420) Futures down 0.97 per cent. The wide gap-down opening today increases the danger of the contract falling below the crucial support at 16,400. Such a break can drag the contract down to 16,300 and 16,200 in the coming sessions. Intraday resistance is at 16,500.
Traders with high-risk appetite can go short now and on a rise at 16,470. Keep the stop-loss at 16,530. Trail the stop-loss down to 16,390 when the contract falls to 16,340. Move the stop-loss further down to 16,320 as soon as the contract touches 16,280 on the downside and book profits at 16,260.
The contract has to rise above 16,500 to ease the downside pressure and to avoid the fall to 16,300-16,200.
Trading Strategy: Go short now and at 16,470. Keep the stop-loss at 16,530 for the target of 16,260. Trail the stop-loss down to 16,390 when the contract falls to 16,340. Move the stop-loss further down to 16,320 as soon as the contract touches 16,280
Supports: 16,400 and 15,300
Resistances: 16,500 and 16,600
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