Nifty 50 June Futures (18,645)
Nifty at 18,568 is down 0.35 per cent. It made a low of 18,544 and is attempting to bounce back. Support for the day can be at 18,500. We expect fresh buying to happen in the 18,550-18,500 region. That will continue to keep the broader uptrend intact.
All major Asian indices are in red today. Hang Seng (18,178), down 2.25 per cent has been beaten down the most. Nikkei 225 (30.825) is down 1.6 per cent. Shanghai Composite (3,200) and Kospi (2,582) are down 0.7 and 0.1 per cent respectively.
In the US, the Dow Jones Industrial Average (33,042) has risen back from the low of 32,893. The index has to sustain above 33,000 and get a strong follow-through rise from here to ease the downside pressure. In that case, a rise to 33,300-33,500 can be seen in the coming sessions.
Nifty 50 Futures
The Nifty 50 June Futures (18,645) is down 0.37 per cent. Cluster of supports are there in the 18,620-18,590 region. We expect this support zone to hold and the contract to reverse higher. Such a reversal can take the Nifty 50 June Futures contract up to 18,700 again.
This view will go wrong if the contract declines below 18,590. In that case, an extended fall to 18,550 and even 18,500 can be seen.
Traders with high-risk appetite can go long on dips at 18,625. Accumulate at 18,605. Keep the stop-loss at 18,580. Trail the stop-loss up to 18,635 as soon as the contract moves up to 18,650. Move the stop-loss further up to 18,660 when the contract touches 18,675. Exit the long positions at 18,690.
Supports: 18,590, 18,550
Resistances: 18,650, 18,700