Nifty 50 (19,970) and Sensex (67,025) opened today’s session with a gap-down and are now down 0.8 per cent each following bearish cues from the Asian market. Among the major Asian indices, Nikkei 225 (33,075), ASX 200 (7,150), Hang Seng (17,850) and KOSPI (2,550) are down between 0.3 and 0.7 per cent.
Supporting the bearish bias in the domestic market, the market breadth is weak. For instance, the advance/decline ratio of Nifty 50 stands at 18/32. Moreover, all mid- and small-cap indices and most of the sectoral indices are in the red.
Nifty 50 futures
The September futures contract of Nifty 50 opened today’s session lower at 20,050 versus previous close of 20,178. It is currently trading at 20,025.
From the current level, the contract has a support at 20,000. A breach of this level is less likely even though the trend is bearish so far today. Support below 20,000 is at 19,925.
In case the contract bounces off the support at 20,000, it is likely to face resistance at 20,075 and 20,115.
Although the overall bias is bearish, Nifty futures has a support at 20,000. At the same time, there might not be a recovery given the broader bearish sentiment so far today. Therefore, traders can stay on the side-lines today.
Supports: 20,000 and 19,925
Resistance: 20,075 and 20,180