Nifty Call: Go short now and at 16,965

Supports are at 16,800, 16,700 and resistances 17,000, 17,200

FILE PHOTO: Gardeners work outside the National Stock Exchange (NSE) building in Mumbai, India, August 16, 2018. REUTERS/Francis Mascarenhas/File Photo | Photo Credit: FRANCIS MASCARENHAS

Nifty 50 September Futures (16,914)

Global equities continue to remain under selling pressure. The Indian benchmark indices too are trading weak tracking global cues with the Sensex and Nifty 50 are down about 0.4 per cent each. Sensex is at 56,856 and Nifty trading at 16,932.

Nifty has declined well below the key support level of 16,980. It can now remain under pressure and fall to 16,800-16,700 in the next few session

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Global indices

All the major Asian indices are trading in red. Kospi (2,158), down 2.96 per cent has been beaten down the most. Nikkei 225 (26,017) and Hang Seng (17,442) are down over 2 per cent each. Shanghai Composite (3,070) has fallen down 0.75 per cent.

In the US, the Dow Jones Industrial Average (29,134.99) is near the crucial support level of 28,900. A break below it could extend the current fall to 28,200.

Nifty Futures

The Nifty 50 September Futures (16,914) is down 0.61 per cent today. The region between 16,970 and 17,000 can be a good intraday resistance for the contract. The outlook is bearish, and the contract can fall to 16,750-16,700 in the next few sessions.

Nifty to see a gap down opening of 150 points

Analysts expect volatility to continue

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Traders can go short at the current levels and accumulate it on a rise at 16,965. Keep the stop-loss at 17,030 and trail it down to 16,885 as soon as the contract touches 16,820. Move the stop-loss further down to 16,790 when the contract touches 16,760 on the downside. Book profits at 16,740.

The contract has to rise past 17,000 to ease the downside pressure and move up towards 17,200 again. But that looks less likely at the moment.

Trading Strategy: Go short now and at 16,965. Keep the stop-loss at 17,030 for the target of 16,740. Trail the stop-loss down to 16,885 as soon as the contract touches 16,820. Move the stop-loss further down to 16,790 when the contract touches 16,760 on the downside.

Supports: 16,800, 16,700.

Resistance: 17,000, 17,200.

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Bearish outlook. Nifty Call: Go short now and at 16,965