The Asian markets have been trading in the red since morning. The major indices, including the Nikkei 225, ASX 200, Hang Seng and KOSPI, are down in the range of 0.4–2.4 per cent. The Indian benchmark indices, although they began the session with a gap-up, gave up their gains and are trading marginally lower. The Nifty 50 at 17,500 and the Sensex at 58,740 are down by about 0.15 per cent each.
Like the benchmarks, all the mid- and small-cap indices are down for the day.
Among the sectoral indices, the Nifty Healthcare index is the top gainer, up by 0.85 per cent. On the other hand, Nifty Media is the top loser, down by 0.6 per cent.
Futures: Like the underlying Nifty 50, the August futures of the index opened today’s session higher at 17,580 versus Monday’s close of 17,557. But soon, it started falling and is now down at 17,525. At the moment, the contract is supported by 17,500.
Therefore, even though the overall bias is bearish, one can wait and initiate fresh shorts only if the support at 17,500 is breached.
So, traders can wait for now and short Nifty futures with stop-loss at 17,600 if the support at 17,500 is breached. Exit the shorts at 17,300.
Strategy: Short Nifty futures with stop-loss at 17,600 if the support at 17,500 is breached. Exit the shorts at 17,300
Supports: 17,500 and 17,300
Resistances: 17,600 and 17,700