Nifty 50 October Futures (19,766)

Nifty 50 and Sensex are trading flat. Both the indices are attempting to bounce back from their intraday lows. Sensex is trading at 19,747 and Nifty is at 66,245.

Nifty has a strong support at 19,700. As long as it trades above this support, the bias is bullish. Resistance is around 19,800. A break above it can take the Nifty up to 19,900-19,930 during the day.

Broadly, 19,700-19,800 will be the trading range for now. The bias is positive for the Nifty to breach 19.800 and rise to 19,900. The view will turn negative if the Nifty declines below 19,700. In that case, a fall to 19,600 can be seen.

Global indices

Asian markets are all in red. Nikkei 225 (31,680) is down sharply about 2 per cent and Kospi (2,424) is down 1.3 per cent. Hang Seng (17,737) and Shanghai Composite (3,075) are down 0.4 per cent each.

In the US, the Dow Jones Industrial Average (33,670) has been stuck in between 33,500 and 34,000 over the last few days. A breakout on either side of this range will determine the next leg of move. A break above 34,000 can take the Dow Jones up to 34,400-34,500. On the other hand, a break below 33,500 can take the index down to 33,000-32,850.

Nifty 50 Futures

The Nifty 50 October Futures (19,766) is up 0.12 per cent. The outlook is bullish. Support is at 19,730-19,720. The Nifty 50 October Futures contract can rise to 19,850-19,870 in the coming sessions.

The outlook will turn negative only if the contract declines below 19,720. In that case, a fall to 19,680 and 19,630 can be seen.

Trade strategy

Traders can go long now. Accumulate on dips at 19,740. Keep the stop-loss at 19,705. Trail the stop-loss up to 19,785 as soon as the contract moves up to 19,805. Move the stop-loss further up to 19,820 when the contract touches 19,840. Exit the long positions at 19,860.

Supports: 19,720, 19,680

Resistances: 19,820, 19,870

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