The Indian benchmark indices are trading higher. Nifty 50 is up 0.26 per cent and trading at 16,564.55. Sensex is at 55,538, up 0.25 per cent. A crucial resistance is at 16,630. Nifty has to surmount this to extend the current rally. Inability to breach 16,630 and a pull-back breaking below 16,500 will be bearish going forward. Such a break below 16,500 can drag Nifty down to 16,350-16,250 in the near term. The price action in the coming sessions will need a close watch to see if the index is breaking above 16,630 or falling back below 16,500.
Global indices
The Asian markets are trading mixed. Nikkei 225 (27,727) and Kospi (2,403) are up by 0.17 and 0.7 per cent, respectively. Shanghai Composite (3,290) and Hang Seng (20,604), on the other hand, are down by 0.42 and 1.37 per cent, respectively.
In the US, the Dow Jones Industrial Average (31,874.84) was up by 0.15 per cent yesterday. The index has a key resistance at 32,000. It has to breach this decisively to extend the rally. Failure to break above 32,000 and a pull-back below 31,500 can keep the index under pressure to revisit 30,500-30,000 levels in the coming days.
Nifty futures
The Nifty 50 July Futures (16,558) is up 0.23 per cent. It has resistances at 16,600 and 16,670. The current ascent could halt anywhere in the 16,600-16,670 region.
Support is at 16,500. A break below that can turn the outlook negative and drag down the Nifty 50 July Futures contract to 16,300 and even 16,200 in the coming sessions.
Traders can consider taking positional trades at the moment. Wait for a rise and go short at 16,590 and at 16,640. Keep the stop-loss at 16,720. Trail the stop-loss down to 16,560 as soon as the contract moves down to 16,510. Move the stop-loss further down to 16,490 as soon as the contract falls to 16,460. Book profits at 16,410.
Supports: 16,500 and 16,3000
Resistance: 16,600 and 16,650
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