Sensex and Nifty 50 are trading flat. Although the indices saw a sharp bounce yesterday, they seem to lack a strong follow-through rise today. The Sensex is trading at 59,258 and Nifty is at 17,686.
Sensex has strong resistance in the 59,500-59,600 region which will have to be broken to gain bullish momentum and ease the downside pressure. Such a break can take the Sensex up to 60,000-60,500 again. Nifty on the other hand has an immediate resistance at 17,740. A break above it can take it up to 17,800-17,900.
Overall, the global equities seem to lack momentum. The Dow Jones Industrial Average (34,002.92) was down 0.94 per cent yesterday. In Asia, Japan’s Nikkei 225 continue to get beaten down badly.
The index is down 2.6 per cent today and is trading at 27,712. Other Asians are trading mixed. China’s Shanghai Composite is up 0.9 per cent and Hong Kong’s Hang Seng index is trading flat. KOSPI is down 1.9 per cent.
Also read: Markets trade weak with negative bias; Nifty tests 17,650
Futures: The Nifty 50 October Futures (17,675) trades stable and looks mixed in the near-term. 17,630-17,740 can be a possible range of trade.
A breakout on either side of this will only give a clear cue on the next direction on move. A break above 17,740 can take the contract up to 17,850. On the other hand, a break below 17,630 can drag the contract lower to 17,580 and 17,530 eventually. Traders can stay out of the market until the breakout of the 17,630-17,740 range gives a clear trade signal.
- Strategy: Stay out of the market until the 17,630-17,740 range breaks out and gives a clear cue on the direction of move.
- Supports: 17,630 and 17,580
- Resistances: 17,740 and 17,800
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