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Nifty 50 October futures (18,886)
The sell-off in the Indian equity market continues. The Sensex and Nifty 50 are down about 0.9 per cent.
Nifty has declined below the psychological 19,000 mark. It is currently trading around 18,945. The outlook is bearish. As long as it trades below 19,000, there is a good chance it will fall towards 18,700 in the coming days.
Global indices
All major Asian indices are in the red. Kospi, (2,306) down 2.4 per cent, has been beaten down the most. The Nikkei 225 (30,656) is down about 2 per cent.
In the US, the Dow Jones Industrial Average (33,035.93) could test the 32,850 support again. The price action there will need close watch. A break below 32,850 can take it down to 32,600.
Nifty 50 futures
The Nifty 50 October futures (18,886) is down over a per cent. The contract has declined below a key support level of 18,950, which could act as a good resistance.
The outlook is bearish. The Nifty 50 October futures contract can fall to 18,750, and even to 18,650 in the coming sessions.
A strong sustained rise above 18,950 is needed for the contract to get a breather and rise to 19,100 levels again. That looks less probable.
Trade strategy
Traders can go short now. Accumulate shorts on a rise to 18,930. Keep the stop-loss at 18,970. Trail the stop-loss down to 18,860 when the contract falls to 18,835. Move the stop-loss further down to 18,815 when the contract touches 18,805 on the downside. Exit the shorts at 18,780.
Supports: 18,750, 18,650
Resistances: 18,950, 19,100
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