Nifty 50 September Futures (20,215)

Nifty 50 and Sensex are trading higher. Both the indices are up about 0.28 per cent each. Sensex is trading at 67,707, while Nifty is at 20,157.

Nifty has a key intraday support around 20,100. The chances are high for it to test 20,200 during the day. It is important to see if it is managing to rise past 20,200 or not. A break above 20,200 can take it further up to 20,300-20,400 in the coming sessions. Failure to breach 20,200 can keep it in a narrow range of 20,100-20,200 with high chances of the downside extending up to 20,050 and lower.

Global indices

Asian markets are in green. Shanghai Composite (3,135) is up 0.28 per cent. Nikkei 225 (33,553), Kospi (2,605) and Hang Seng (18,347) are up over 1 per cent each today.

In the US, the Dow Jones Industrial Average (34,907, up 0.96 per cent) rose on Thursday. The resistance at 34,700 has been broken decisively. This is a bullish signal. The Dow Jones can now rise to 35,500 and even 36,000 in the coming weeks.

Nifty 50 Futures

The Nifty 50 September Futures (20,215) is up 0.21 per cent. The outlook is bullish. Immediate support is at 20,180. Below that 20,140 is the next important support. The contract can rise to 20,270 during the day. But there after the price action will need a close watch.

Failure to breach 20,270 can take the contract down to 20,200-20,180 and even lower. Nifty 50 September Futures will have to breach 20,270 to move further higher to 20,350-20,400.

Trade Strategy

Although the outlook is bullish to see a rise from current levels, the risk-reward ratio does not favour any good trade. So, we suggest traders to stay out of the market today. See how the index closes for the week today. Trades can be taken accordingly next week.

Supports: 20,180, 20,140

Resistances: 20,270, 20,350