Nifty 50 August futures (19,284)

The Nifty 50 and Sensex are trading slightly higher. The Sensex is trading at 64,981, up 0.14 per cent. Nifty at 19,302 is up 0.2 per cent.

Nifty is managing to hold above 19,250. This could keep the 19,250-19,500 range intact for some time. A breakout on either side of 19,250-19,500 will then determine the next move.

A break below 19,250 can drag the index down to 19,100-19,000. On the other hand, a sustained break above 19,500, can take the Nifty up to 19,600-19,750.

Global indices

Asian markets are in the green, taking cues from a rise in the US markets on Friday. The Shanghai Composite (3,134) is up 2.3 per cent, while the Nikkei 225 (32,149) and Hang Seng (18,261) are up about 1.7 per cent.

In the US, the Dow Jones Industrial Average (34,346), which rose well on Friday, is sustaining well above the crucial support level of 34,000. It is important for it to rise past 34,500 from here. The rise will turn the outlook bullish and take the index up to 35,000 and 35,500 in the short-term.

Nifty 50 futures

The Nifty 50 August futures (19,284) is up about 0.2 per cent today. The contract has risen well from its support around 19,200. Immediate resistance is at 19,315. A break above it can take the contract up to 19,350-19,400, and even higher in the coming sessions.

Price action on the charts suggests that there is good chance the contract will break 19,315 and rise going forward.

Trade strategy

Traders can go long now. Keep the stop-loss at 19,240. Trail the stop-loss up to 19,305 as soon as the contract moves up to 19,325. Move the stop-loss further up to 19,330 when the contract touches 19,345 on the upside. Exit the longs at 19,370.

Supports: 19,250, 19,200

Resistances: 19,315, 19,400

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