Comments
Nifty 50 April Futures (17,596)
Sensex and Nifty 50 have pulled away from their intraday highs, giving back all the gains, and are trading flat now. Sensex is at 17,556 (up 0.15 per cent) and Nifty is at 58,630 (up 0.3 per cent). The broader picture remains weak. Sensex has resistance in the 59,000-59,500 region. Nifty has resistance at 17,800. Support is at 17,400 on the Nifty and 58,000 on Sensex. Both indices appear likely to break these supports and fall to 17,000 and 57,000, respectively. Please note that the Indian markets are closed from Thursday for the rest of the week on account of public holidays. As such we see high chances of a wide gap opening on Monday.
In Asia, barring the Shanghai Composite (3,199, down 0.44 per cent), other major indices are trading in the green. Nikkei 225 (26,722), Hang Seng (21,343) and Kospi (2,704) are up in the range of 0.1-1.5 per cent. In the US, the Dow Jones Industrial Average (34,220.36, down 0.26 per cent) had come off sharply from the day’s high of 34,669.97. The price action on the chart indicates that it has a high chance to break 34,000 and fall to 33,500-33,000 in the coming days.
Futures: The Nifty 50 April (17,596) has come off sharply after making a high of 17,704. The outlook is bearish. The contract can fall to 17,450-17,400. Looking at the bigger picture, the bias remains negative for a break below 17,400 and a steeper fall to 17,000 in the next few weeks. Resistances are at 17,630 and 17,730
Since today is the last trading day of the week, we suggest traders stay out of intraday trades. However, positional trades can be taken. Traders who can hold their positions for a week or two can consider the following trade. Go short at current levels and accumulate shorts at 17,670. Keep the stop-loss at 17,780. Trail the stop-loss down to 17,510 as soon as the contract falls to 17,420. Move the stop-loss further down to 17,410 as soon as the contract declines to 17,360. Book profits at 17,280.
The Nifty 50 April Futures contract will have to break above 17,730 decisively to become bullish. But that looks unlikely as the contract seems to be getting fresh selling interest at higher levels.
Trading strategy: Intraday traders can stay out of the market. Positional traders can go short now and on rallies at 17,670. Keep the stop-loss at 17,780 for the target of 17,280. Trail the stop-loss down to 17,510 as soon as the contract falls to 17,420. Move the stop-loss further down to 17,410 as soon as the contract declines to 17,360.
Supports: 17,500 and 17,400
Resistances: 17,630 and 17,730
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.