Nifty 50 October Futures (19,705)

Nifty 50 and Sensex are trading lower on weak global cues. Both the indices lost about 0.5 per cent each. Sensex is trading at 66,025, while Nifty is at 19,690.

Nifty has declined below the immediate support level of 19,770. However, another important support is at 19,620 and this can limit the downside for the day. Though a dip to test this support during the day is possible, a break below 19,620 is less likely. We expect the Nifty to bounce back from around 19,620 and rise back to 19,800 in the coming days.

Global indices

All Asian major indices are in red. Hang Seng (17,852), down 2.11 per cent, was the major loser. Nikkei 225 (32,341), Kospi (2,456) and Shanghai Composite (3,087) are all down in the range of 0.5-0.9 per cent.

In the US, the Dow Jones Industrial Average (33,631) was down 0.5 per cent on Thursday. The immediate outlook is little mixed. We may have to wait and watch the price action for a few sessions to get clarity.

Nifty 50 Futures

The Nifty 50 October Futures (19,705) is down 0.7 per cent. Intraday resistance is at 19,740. Immediate support is at 19,680. A break below this level can drag the contract down to 19,600.

The Nifty 50 October Futures contract will have to see a decisive rise past 19,740 to ease the downside pressure, ensuring the chances of the contract rising back to 19,800-19,850.

Trade Strategy

Considering the risk-reward ratio, we suggest traders to stay out of the market today. See how the market closes for the week today and then trades can be formulated accordingly next week.

Supports: 19,680, 19,600

Resistances: 19,740, 19,800