Nifty 50 September Futures (17,705)
The Sensex and Nifty 50 are trading sharply lower tracking weak global cues. Both the indices are down over a per cent each. Sensex is trading at 59,206 and is down 1.21 per cent. Nifty is down 1.22 per cent and is trading at 17,662. Nifty has an important support at 17,600 and it will have to be seen if this level is sustained A break below 17,600 can drag it to 17,400. On the other hand, a bounce above 17,600 can keep the Nifty rangebound between 17,600-18,100 for some time.
All major Asian indices are in red today. The Nikkei 225 (27,566), Shanghai Composite (3,169), Hang Seng (18,850) and Kospi (2,376) are all down in the range of 0.42-1.1 per cent. In the US, the Dow Jones Industrial Average (30,961.82) was down 0.56 per cent yesterday. The close below 31,000 is very bearish and it can drag the index down to 30,000-29,500 in the coming days.
The Nifty 50 September Futures (17,705) is down 1.1 per cent. It has strong resistance at 17,780. There is room on the downside to test 17,610. A break below 17,610 can drag it further lower to 17,530-17,500 in the coming sessions.
Traders can go short at current levels and accumulate shorts on the rise at 17,765. Keep the stop-loss at 17,825 and trail it down to 17,685 as soon as the contract drifts to 17,635. Move the stop-loss further down to 17,620 when the contract nears 17,570 and book profits at 17,525.
A decisive close above 17,780 would negate the bearish bias and bring back the positive sentiment
Trading Strategy: Go short now and accumulate shorts at 17,765. Keep the stop-loss at 17,825 for the target of 17,525. Trail the stop-loss down to 17,685 as soon as the contract moves down to 17,635. Move the stop-loss further down to 17,620 when the contract moves down to 17,570
Supports: 17,610, 17,500
Resistances: 17,780, 17,870