Nifty 50 and Sensex are trading flat. Both indices are struggling to move up. But the price action on the chart does not suggest a negative picture.

Nifty is getting good support in the 19,770-19,750 region. As long as the Nifty stays above this support, the near-term outlook will remain bullish. Immediate resistance is at 19,850. A break above it can take the Nifty up to 19,930,19,950.

Global indices

Asian markets are trading mixed. Kospi (2,460) is flat. Hang Seng (17,755) and Nikkei 225 (32,000) are marginally down by 0.1 per cent. Shanghai Composite (3,064) is down 0.6 per cent.

In the US, the Dow Jones Industrial Average (33,997) closed slightly higher by 0.04 per cent. The near-term outlook is bullish. Supports are at 33,900 and 33,800. The Dow Jones can rise to 34,300-34,400 in the coming days.

Also read

Sensex, Nifty fall in early trade on sluggish global trends, spike in Brent crude oil prices

Crude oil up as unrest in West Asia escalates

Rupee rises 2 paise to 83.23 against US dollar on FII inflows

Nifty 50 Futures

The Nifty 50 October Futures (19,835) is up 0.12 per cent. Outlook is bullish. Support is in the 19,800-19,780 region. The Nifty 50 October Futures contract can rise to 19,930-19,950 in the coming sessions. Intermediate resistance is in the 19,850-19,870 region.

The near-term outlook will turn negative if the contract breaks below 19,780. Such a break can drag it down to 19,720-19,700.

Trade strategy

Traders can go long now. Accumulate at 19,815. Keep the stop-loss at 19,785. Trail the stop-loss up to 19,855 as soon as the contract moves up to 19,880. Move the stop-loss further up to 19,890 when the contract touches 19,905. Exit the long positions at 19,920.

Supports: 19,780, 19,720

Resistances: 19,870, 19,930.

Related Topics
comment COMMENT NOW