Nifty 50 October futures (19,824)

Nifty 50 and Sensex have edged down about 0.14 per cent each after opening higher. Nifty is trading at 19,786, and the Sensex at 66,384.

Support for the Nifty is at 19,750. If it sustains above this support, a rise to 19,850 is possible during the day. The level of 19,850 has been capping the upside. So, a break above 19,850 would be needed for the Nifty to gain momentum, and extend the upside to 20,000.

The possibility of a fall to 19,720-19,700 will come into the picture on a break below 19,750.

Global indices

The major Asian indices are trading strong. Nikkei 225 (32,464), Kospi (2,474) and Hang Seng (18,231) are up over a per cent, while the Shanghai Composite (3,104) is up 0.8 per cent.

In the US, the Dow Jones Industrial Average (33,804.87) was up about 0.2 per cent on Wednesday. The outlook remains bullish for a rise to 34,000-34,300 in the coming days.

Nifty 50 futures

The Nifty 50 October futures (19,824) is down 0.14 per cent. The contract has support near current levels at 19,800. A bounce from there can take the Nifty 50 October futures contract up to 19,900, and even higher. But a break below 19,800 can drag the contract down to 19,740.

We expect the contract to sustain above 19,800, and rise towards 19,900 in the coming sessions.

Trade Strategy

Traders with a high-risk appetite can go long now, and at 19,810. Keep the stop-loss at 19,780. Trail the stop-loss up to 19,840 as soon as the contract moves up to 19,855. Move the stop-loss further up to 19,860 when the contact touches 19,875. Exit the long positions at 19,990.

Supports: 19,800, 19,750

Resistances: 19,900, 20,000