Comments
Nifty 50 October Futures (19,600)
Nifty 50 and Sensex have opened the week on a weak note. The geopolitical tensions after the surprise attack by Hamas on Israel has caused jitters in the market. Both the Sensex and Nifty 50 are down about 0.5 per cent each. They are now attempting to bounce back from their intraday lows.
Nifty made a low of 19,480.50 and has risen back from there. It is currently trading at 19,570. The support at 19,480 has held very well. It is important now for the index to breach and get a strong follow-through rise above 19,600. A sustained rise above 19,600 will ease the downside pressure and will strengthen the bullish scenario. In that case Nifty can rise toward 19,800 and higher this week.
Global indices
Asian markets are trading mixed. Kospi (2,408) is up 0.2 per cent while Shanghai Composite (3,088) is down 0.7 per cent. Japan is closed on account of a public holiday. Hong Kong is closed for the morning session.
In the US, the Dow Jones Industrial Average (33,407) rose sharply on Friday. The support near 32,800 is holding well for now. If the index manages to rise past 33,500 from here, it can rise up to 34,000-34,500 in the coming days. However, the Dow Jones will have to rise above 34,500 decisively to turn the outlook bullish.
Nifty 50 Futures
The Nifty 50 October Futures (19,600) is down 0.4 per cent. The contract fell to a low of 19,506 in the opening trades and has risen back sharply from there.
Immediate resistance is at 19,620. A break above it will be bullish to see 19,700-19,750. Support is around 19,550. The contract will come under pressure to see 19,500 and lower levels if it breaks below this support.
We will have wait and watch the price action during the day and see how the contract closes for the day today. That might give some cue on the direction of move for this week.
Trade Strategy
We suggest traders to stay out of the market today as the risk-reward ratio is not favouring to take trades in specific direction.
Supports: 19,550, 19,500
Resistances: 19,620, 19,700
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.