Nifty call: Stay out of the market, wait for 16,000-16,150 range to break-out

Nifty 50 July futures (16,087)

The Indian benchmark indices are hovering above their crucial supports. 16,000 on the Nifty and 53,800 on the Sensex are important supports. The indices have to sustain above these levels in order to keep alive the chances of a fresh rise from here.  

Both the Sensex and Nifty are trading flat now. The Sensex is at 53,920 and Nifty at 16,070. A strong bounce from here will improve the chances of seeing 16,400-16,500 on the Nifty and 55,000 on the Sensex. On the other hand, if the indices decline below their supports, they will come under pressure for a fresh fall. As such, price action in the coming sessions will need to be watched closely.

Global indices

In Asia, all the major indices are trading in the green. The Nikkei 225 (26,442), Shanghai Composite (3,293), Hang Seng (20,975) and Kospi (2,334) are all up in the range of 0.35-0.7 per cent today.

In the US, the Dow Jones Industrial Average (30,981.33) has been declining over the last few days. It looks likely to fall towards 30,500-30,300 in the coming days.

Nifty 50 futures

The Nifty 50 July (16,087) futures is up 0.27 per cent. The contract has come-off from the high of 16,142. The level of 16,150 had capped the upside on Tuesday as well. So broadly, 16,000-16,150 can be the trading range. A breakout on either side of this range will determine the next direction of move.

A break above 16,150 will be bullish. It will take the contract up to 16,250-16,300. On the other hand, a break below 16,000 will be bearish and a fall to 15,900-15,880 is possible thereafter.

Traders can stay out of the market and take trades based on the side in which the contract breaks out of the range.

Trading strategy: Stay out of the market. Take trades based on the side in which the contract breaks the 16,000-16,150 range.

Supports: 16,000 and 15,900

Resistances: 16,150 and 16,250

COMMENT NOW