Nifty 50 September Futures (17,628)

The Indian equity markets have been volatile since the beginning of this week. Although the Sensex and Nifty 50 are trading lower today, they have bounced back well from the day’s low, recovering some of the loss. The Sensex (58,989) is down 0.89 per cent and Nifty (17,607) is down 0.85 per cent. 

Nifty is staying afloat despite the global equities overall weakness. As such, it is better to stay out of the market, may be even for the rest of the week watching the movements. There are chances of getting clarity on the direction of market movement depending on how the index closes tomorrow.

For now, 17,750-17,775 will be a crucial level to watch out for. Nifty has to breach this level to gain strength and rise to 18,000 levels. Else, the chances of a sharp fall from here cannot be ruled out.

Global indices

All major Asian indices are in the red today. Kospi (2,415, down 2.28 per cent) has been beaten down the most. Nikkei 225 (27,661), Shanghai Composite (3,186) and Hang Seng (19,608) are all down in the range of 0.5 to 1.75 per cent.

In the US, the Dow Jones Industrial Average (31,510, down 0.88 per cent) continues to move down. It remains bearish to test 31,000 and even lower levels in the coming days.

Nifty Futures

The Nifty 50 September Futures (17,628) is down over a per cent. It rose to a high of 17,712 before falling down from that level. If this descend continues, a test of 17,550 is possible. A break below 17,550 can drag it even down to 17,450.

On the upside, resistance is at 17,750. A strong break above it is needed to move up further to 17,850. Broadly, we can see a range of 17,550-17,750 for some time. A breakout on either side of this range will give clarity on the next move

We suggest traders to stay out of the market for a few sessions.

Trading Strategy: Stay out of the market

Supports: 17,550, 17,450

Resistances: 17,750, 17,850

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