Nifty 50 October Futures (17,616)
Equity benchmarks BSE Sensex and NSE Nifty 50 are managing to hold higher after rising sharply from Thursday’s lows. Sensex is trading at 59,468, up 0.45 per cent and Nifty at 17,631 is up 0.4 per cent.
Nifty is holding well above the key level of 17,600. As long as it trades above 17,600, the outlook is bullish to touch 17,800 and higher levels in the coming days.
Global indices
In Asia, barring Shanghai Composite (3,042, up 0.26 per cent), major indices are trading in red. Nikkei 225 (26,904), Hang Seng (16,204) and Kospi (2,212) are all down in the range of 0.25-0.50 per cent.
In the US, the Dow Jones Industrial Average (30,333, down 0.3 per cent) dipped slightly on Thursday. Its prospects look mixed in the near-term. However, from a macro prospective, it has the potential to rise towards 31,000-31,500 in the coming days.
Nifty Futures
The Nifty 50 October Futures (17,616) is up 0.43 per cent today. A strong resistance for the day is at 17,670. The contract will have to breach this hurdle in order to gain further momentum. Such a break can take the Nifty Futures contract up to 17,800-17,830 in the coming sessions.
On the other hand, inability to break above 17,670 can drag the contract down to 17,550 and even lower.
Trading strategy
In spite of a scope for a rise during the day, the risk reward ratio does not favour a good trade. So, we suggest traders to stay out of the market today.
Supports: 17,600, 17,550
Resistances: 17,670, 17,830