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Nifty 50 and Sensex are trading flat. Sensex is trading at 65,208 and Nifty at 19,395. The price action over the last few days indicates that the benchmark indices are lacking strong follow-through buyers.
Nifty continues to trade below 19,500. It is unable to rise above 19,400. For now, 19,250-19,500 is the trading range, with a negative bias to break below 19,250. Such a break can take it down to 19,100 and even 19,000 in the coming sessions.
Global indices
Asian markets are mixed. Nikkei 225 (31,916) and Hang Seng (17,852) are up while Kospi (2,502) and Shanghai Composite (3,103) are in red.
In the US, the Dow Jones Industrial Average (34,288) was down 0.5 per cent. The near-term outlook is negative. But there are strong supports to limit the downside. The 34,100-34,000 region is a very good support. We can expect the Dow Jones to reverse higher from this support zone. Thereafter a fresh leg of rise can happen.
Nifty 50 Futures
The Nifty 50 August Futures (19,366) is down marginally by 0.1 per cent. Intraday price action over the last couple of days indicates that the contract has been facing strong resistance around 19,430. Outlook is negative. The contract can fall to 19,300 and 19,250 in the coming sessions.
Also read
The near-term outlook will turn positive only on a strong break above 19,430. In that case, a rise to 19,500-19,530 is possible.
Trade strategy
Traders can go short now. Accumulate on a rise at 19,390. Stop-loss can be placed at 19,440. Trail the stop-loss down to 19,345 when the contract falls to 19,325. Move the stop-loss further down to 19,305 when the contract touches 19,290. Exit the shorts at 19,270.
Supports: 19,300, 19,250
Resistances: 19,430, 19,530
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