Nifty 50 August Futures (19,322)

Nifty 50 and Sensex are trading marginally higher. Both the indices are up a little over 0.1 per cent each. Sensex is trading at 65,080 and Nifty at 19,331.

The price action since Monday indicates lack of momentum to move up. It also signals that there no strong buyers to take the indices sharply higher. That keeps the benchmark indices vulnerable to see some more dip from here before an actual reversal happens. So, overall it is going to be wait and watch situation for some time.

Nifty can oscillate between 19,200 and 19,400 in the near-term. A breakout on either side will determine whether the Nifty can go up to 19,500-19,600 or fall to 19,100-19,000.

Global indices

Major Asian indices are in green. Hang Seng (18,496) and Shanghai Composite (3,142) are up the most by 2 and 1.4 per cent respectively.

In the US, the Dow Jones Industrial Average (34,559.98) has risen well on Monday. It is holding well above the key support level of 34,000. A further strong follow-through rise from here can take the Dow Jones up to 35,000-35,500 in the coming weeks.

Nifty 50 Futures

The Nifty 50 August Futures (19,322) is trading flat. The contract has resistance around 19,370. It has to break above it to move further higher towards 19,450 and 19,500. Else an intraday dip to 19,300 and 19,270 is a possibility. The level of 19,270 is an important support which if broken can drag the Nifty 50 August Futures contract down to 19,220-19,200.

Trading Strategy

Traders can wait for dips and go long at 19,285. Keep the stop-loss at 19,245. Trail the stop-loss up to 19,305 when 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 19,360.

Supports: 19,300, 19,270

Resistances: 19,370, 19,450

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