Nifty 50 September Futures (19,692)
After beginning the week on a very volatile note, the Indian benchmark indices are attempting to bounce back today. Nifty 50 is marginally up by 0.1 per cent and is trading at 19,693. Sensex on the other hand is flat at 66,030.
Nifty is getting support around 19,600 for now. Another support is at 19,500. The current sell-off will intensify only if the Nifty breaks below 19,500. In that case, a fall to 19,200-19,100 can be seen. Resistance is now in the 19,750-19,800 region. A strong break above 19,800 will ease the downside pressure. It will open the doors for a revisit of 20,000 levels. We will have to wait and watch the price action for a few sessions to get clarity.
All major Asian indices are in red today. Shanghai Composite (3,105), Hang Seng (17,580), Nikkei 225 (32,379) and Kospi (2,464) are all down in the range of 0.3 to 1.2 per cent.
In the US, the Dow Jones Industrial Average (34,006.88) has managed to bounce and close just above 34,000. It is important for it to get a strong follow-through rise from here to avoid the danger of seeing a steep fall below 34,000 again.
If the Dow Jones manages to sustain above 34,000 and rise from here, it can test 34,200-34,300 in the near-term.
Nifty 50 Futures
The Nifty 50 September Futures (19,692) is flat today. Broadly, 19,600-19,800 seems to be the trading range. The contract can oscillate within this range for now. A breakout on either side of 19,600-19,800 will determine the next move.
A break below 19,600 can drag it down to 19,500 and lower. On the other hand, a break above 19,800 can take the Nifty 50 September Futures contract up to 19,900-20,000.
Since the contract is likely to be volatile within the range, we suggest traders to stay out of the market today.
Supports: 19,600, 19,500
Resistances: 19,800, 19,900