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Sensex and Nifty 50 have opened the week on a strong note. They both witnessed a wide gap-up open today and are trading higher. Sensex is up 0.83 per cent and is trading at 61,815. Nifty 50 is trading at 18,507, up 0.92 per cent.
The strong surge in Indian indices has come amid the broader weakness seen in other major Asian indices. Nikkei 225, Shanghai Composite, Hang Seng and Kospi are down in the range of 0.2 per cent to 0.3 per cent.
In the US, the Dow Jones Industrial Average had seen a sharp rise on Friday. The index has closed the week on a strong note above the key level of 35,000. This could now pave way for a fresh rise to 36,000-36,250 this week. This could aid the Sensex and Nifty 50 to move further up this week.
Futures: The Nifty 50 October Futures (18,495) contract is trading up by 0.77 per cent. Immediate support is at 18,400 and then a slightly deeper one is in the 18,320-18,300 region. The chances are high for the contract to sustain above 18,400 in the coming sessions. The outlook is bullish. The Nifty 50 October Futures contract can rise to 18,600-18,700 in the coming sessions.
Traders can go long now and accumulate on dips at 18,415. Stop-loss can be placed at 18,360. Book profits at 18,700. Trail the stop-loss up to 18,475 as soon as the contract moves up to 18,510. Move the stop-loss further up to 18,530 as soon as the contract touches 18,585.
The outlook will turn negative only if the contract breaks below 18,300. Such a break, though less likely can drag the contract down to 18,000 and 17,600 again.
Strategy: Go long now and accumulate on dips at 18,415. Keep the stop-loss at 18,360. Book profits at 18,700. Trail stop-loss up to 18,475 as soon as the contract moves up to 18,510. Move the stop-loss further up to 18,530 as soon as the contract touches 18,585.
Supports: 18,400 and 18,320
Resistances: 18,600 and 18,700
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