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Nifty 50 and Sensex are trading flat. They opened with a gap-up and rose initially but did not sustain. Nifty made a high of 19,443 and has since fallen. It is currently trading at 19,413, up 0.11 per cent.
A strong resistance is at around 19,500. Nifty has to breach this hurdle to gain momentum for a convincing rise towards 19,600-19,700 and higher. Else, it can fall back to 19,250 and remain at 19,250-19,500.
Global indices
In Asia, barring the Shanghai Composite (3,085), down 0.24 per cent, other major indices are in green. In the US, the Dow Jones Industrial Average (34,463) was down marginally by 0.11 per cent. It is currently supported at around 34,250. A strong follow-through rise from here might reduce the chance of a fall to 34,000. As such the price action in the next few days will need a close watch.
Nifty 50 future
The Nifty 50 August Futures (19,405) is up marginally by 0.03 per cent. The contract has resistance at around 19,440. A strong break above it will only take it up to 19,500 and 19,550. Support is at 19,370. A break below it can take the contract down to 19,320 and 19,270.
So, broadly, 19,370-19,440 will be the trading range to watch. A breakout on either side of this range will determine the next move.
Trade strategy
Market looks likely to be range-bound. So, we suggest traders stay out of the market until a clear trend emerges.
Supports: 19,370, 19,320
Resistances: 19,440, 19,500
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