Nifty 50 July Futures (19,837)

Nifty 50 and Sensex are trading lower. Both indices are trying to recover the loss after opening the day with a wide gap down. Nifty 50 is trading at 19,821, down 0.8 per cent. Sensex at 66,940, is down 0.94 per cent.

Considering the strong gap-down open today, chances are high for the upside to be capped. The chances of the indices falling back during the day cannot be ruled out on the back of profit booking. So, as long as the Nifty trades below 19,900, it can fall to 19,750-19,700 during the day.

Global indices

In Asia, Nikkei 225 (32,379) is down 0.34 per cent. Other major indices such as the Kospi (2,603), Hang Seng (19,064) and Shanghai Composite (3,170) are in green.

In the US, the Dow Jones Industrial Average (35,225) continues to move up. The bullish view of seeing a rise to 35,500 remains intact. A short-lived correction is possible from around 35,500.

Nifty 50 Futures

The Nifty 50 July Futures (19,837) is down 0.66 per cent. The contract can test the intraday support at 19,800. It is important to see if this supports hold or not. A bounce from around 19,800 can take the contract back to 19,900 and higher. On the other hand, a break below 19,800 will be bearish and can drag the Nifty 50 July Futures contract down to 19,750-19,700.

Overall, the price action around 19,800 will need a close watch today.

Trade Strategy

Traders can stay out of the market today. Watch the price action around 19,800 and see how the market closes for the week. Accordingly, trades can be taken next week.

Supports: 19,800, 19,750

Resistances: 19,870, 19,920