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Nifty 50 August futures (19,275)
The Nifty 50 and Sensex are trading lower, down about 0.4 per cent each. Sensex is trading at 64,996 and Nifty at 19,305. However, both the indices are attempting to bounce back from their intraday lows.
The Nifty made a low of 19,262.80 and has bounced back from there. The index had failed to sustain the break above 19,500 on Thursday and has returned to its 19,250-19,500 range. This range is holding well as of now. A break-out on either side of 19,250-19,500 will determine whether the Nifty will go up to 19,600-19,700 or fall to 19,100-19,000.
Powell’s speech
The market is waiting to hear the US Federal Reserve Chairman, Jerome Powell’s speech today evening at the Jackson Hole Economic Symposium. Expectations are high for hints from the Fed Chairman on its monetary policy plan. Volatility is likely to increase based on the outcome of his speech. Powell is scheduled to speak today at 07:35 PM (IST).
Global indices
All the major Asian indices are in the red. The Nikkei 225 (31,673), down 1.9 per cent, has been beaten down the most, followed by the Hang Seng (18,024), down 1 per cent.
In the US, the Dow Jones Industrial Average (34,099) fell just over a per cent. It is now poised just above the crucial support level of 34,000. A strong bounce from here can take it back up to 34,500 and higher. But a break below 34,000 will increase the downside pressure and drag it down to 33,800-33,600. We will have to wait and watch.
Nifty 50 futures
The Nifty 50 August futures (19,275) had tumbled and broken below the support at 19,530 on Thursday. A crucial support at 19,230 could be tested during the day. A bounce from there and a subsequent rise past 19,300 is needed to ease the downside pressure. In that case, the contract can get a breather and rise to 19,400-19,500 again.
But a break below 19,230 will see the contract falling towards 19,000.
Trade strategy
We suggest traders stay out of the market. Watch what is happening to the support at 19,230, and how the market closes today. Also, watch the outcome of the Fed Chairman, Jerome Powell’s speech today evening. Accordingly, trades can be taken next week.
Supports: 19,230, 19,000
Resistances: 19,280, 19,350.
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