Nifty 50 October Futures (19,566)

Rising US Treasury yields, global geopolitical tensions are weighing on the equity markets. The US’ Dow Jones Industrial Average dropped about one per cent on Wednesday. This negative sentiment has impacted the Asian markets, too, dragging the major indices over a per cent.

Similarly, Indian benchmark indices are trading lower. Nifty 50 and Sensex have lost about 0.45 per cent each. Sensex is trading at 65,580, while Nifty is at 19,583.

Global indices

In Asia, Kospi (2,416) and Hang Seng (17,386) are down about 1.9 per cent. Shanghai Composite (3,021) and Nikkei 225 (31,512) are down 1.2 and 1.7 per cent respectively.

The Dow Jones (33,665) in the US had declined breaking below the key support level of 33,800. The outlook is now negative and the index is expected to witness further fall towards 33,500 and even to 33,000-32,850 in the coming days. The bullish view of seeing a rise to 34,300-34,400, which we have been mentioning for r the last few days, stands negated.

Nifty 50 Futures

The Nifty 50 October Futures (19,566) is down about 0.6 per cent. The contract declined below the key support level of 19,670. The outlook is bearish. The Nifty 50 October Futures contract can now fall to 19,400-19,380 in the coming sessions.

The contract has to rise above 19,600 to get some breather. However, a strong rise past 19,670 is needed to turn the outlook positive.

Trade Strategy

Traders can go short now. Accumulate shorts on a rise at 19,585. Keep the stop-loss at 19,615. Trail the stop-loss down to 19,545 as soon as the contract moves down to 19,520. Move the stop-loss further lower to 19,510 when the contract touches 19,490. Exit the short positions at 19,470.

Supports: 19,500, 19,400

Resistances: 19,600, 19,670