Nifty call: Go short with stop-loss at 17,835

Nifty 50 April Futures (17,738)

The Sensex and Nifty 50 have begun the week on a weak note. Both the indices are trading lower today. Sensex at 59,060 is down 0.6 per cent. Nifty on the other hand is down 0.52 per cent and is currently trading at 17,692. Immediate support is at 58,900 for the Sensex and 17,600 for Nifty. A break below these supports will increase the downside pressure. Such a break can drag the Sensex down to 58,000-57,000 in the next few days and Nifty to 17,400 and even 17,200-17,000 in the coming weeks. The bias on the chart is negative. As such, we expect the Sensex and Nifty to break below 58,900 and 17,600, respectively and fall in the coming days.

All the major Asian indices are trading in red today. Shanghai Composite (3,180) and Hang Seng (21,219) are down over 2 per cent. Nikkei 225 (26,791) is down 0.72 per cent and Kospi (2,690) is down 0.36 per cent.

Futures

The Nifty 50 April (17,737) down 0.88 per cent. Immediate supports are at 17,650 and 17,600. Resistance is at 17,820. While below 17,820, a dip to 17,650-17,600 is possible today. A break below 17,600 will be bearish to see 17,400 and 17,200 in the coming sessions.

Traders with high-risk appetite can go short at current levels and accumulate on the rise at 17,785. Keep the stop-loss at 17,835 and trail down to 17,710 when the contract falls to 17,660. Move the stop-loss further down to 17,640 as soon as the contract touches 17,610 and book profits at 17,570.

A strong rise past 17,820 is needed to turn the outlook bullish for seeing 18,000 levels and to negate the fall to 17,600-17,400.

Trading Strategy

Go short now and on rallies at 17,785 with stop-loss at 17,835 for the target of 17,570. Trail the stop-loss down to 17,710 as soon as the contract falls to 17,660 and move it further down to 17,640 as soon as the contract touches 17,610.

Supports: 17,650 and 17,600

Resistances: 17,820 and 17,900

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