Nifty 50 and Sensex are trading marginally lower. Both the indices are down about 0.12 per cent each. Sensex is trading at 65,803 and Nifty is at 19,587.

The overall picture remains positive. The price action this week indicates that the Nifty has got strong buyers around 19,500 and 19,400. So, for the index to come under pressure only if the Nifty declines below 19,400. But that looks unlikely because, over the last couple of days, the level 19,500 itself is providing strong support. The chances are high for the Nifty to sustain above 19,500 itself. The outlook is bullish. The Nifty can rise to 19,800-19,850 in the coming days.

Global indices

Asian markets are all in red following the fall in the US markets overnight. Hang Seng (18,274) is down about a per cent. Kospi (2,548) and Shanghai Composite (3,139) are down 0.6 per cent each.

In the US, the Dow Jones Industrial Average (34,443) was down 0.57 on Wednesday. The index has key supports at 34,400 and 34,200. It is important to see if the Dow Jones is sustaining above these supports are not. A break below 34,200 will drag the index down to 34,000 and 33,800. The price action in the coming days will need a close watch.

Nifty 50 Futures

The Nifty 50 September Futures (19,645) is down marginally by 0.07 per cent. The contract has strong supports at 19,610 and 19,570. As long as the contract stays above these supports, the outlook is bullish. Nifty 50 September Futures contract can rise to 19,700 and 19,750 in the coming sessions.

The outlook will turn negative only if the contract breaks below 19,570. Such a break can take it down to 19,450.

Trade Strategy

Traders can go long on dips at 19,620. Keep the stop-loss at 19,580. Trail the stop-loss up to 19,640 as soon as the contract moves up to 19,665. Move the stop-loss further up to 19,685 when the contract moves up to 19,705. Exit the long positions at 19,730.

Supports: 19,610, 19,570

Resistances: 19,700, 19,750