Nifty 50 June Futures (18,635)

Nifty 50 and Sensex rose back well from the lows made in the initial trade. Both the indices are up about 0.2 per cent each. Nifty is trading at 18,574 and Sensex at 62,734.

Intraday resistance for Nifty is in the 18,585-18,600 region. The index has to breach 18,600 to get more relief and rise further to 18,650 and 18,700. The chances of a fall back to 18,500 and even lower levels in the coming sessions cannot be ruled out.

Global indices

In Asia, barring Kospi (2,569, down 0.33 per cent), other major indices are trading in green. Hang Seng (18,383), Shanghai Composite (3,218) and Nikkei 225 (31,112) are up in the 0.4-0.8 per cent range.

US markets continue to remain under pressure. The Dow Jones Industrial Average (32,908) was down 0.4 per cent on Wednesday. A further fall from here will be bearish to see 32,500 and even lower levels in the coming days.

Nifty 50 Futures

The Nifty 50 June Futures (18,635) is trading flat. The intraday price action since Wednesday indicates a lack of strength to move up. Intraday resistance is at 18,660-18,680. The contract has to break above 18,680 to gain bullish momentum. Such a break can take it up to 18,730 and 18,780.

Failure to breach 18,680 can drag the contract down to 18,580-18,550 during the day. On the charts, it looks like the contract can fall to 18,550 or lower first and then resume the overall uptrend.

Trading strategy

Traders with a high-risk appetite can go short now. Accumulate shorts at 18,655. Keep the stop-loss at 18,690. Trail the stop-loss down to 18,615 as soon as the contract falls to 18,595. Move the stop-loss further down to 18,580 when the contract touches 18,565 on the downside. Exit the shorts at 18,555.

Supports: 18,580, 18,550

Resistances: 18,680, 18,730