Nifty 50 September Futures (19,577)
After being stable and range bound over the last couple of days, Nifty 50 and Sensex have resumed their fall. Both the indices are down about 0.5 per cent each. Nifty 50 is trading at 19,573 and Sensex is at 65,616.
Nifty has declined below 19,600. Next important support is at 19,500 which can be tested today. A break below 19,500 can drag it down to 19,200-19,100 in the short-term. The price action around 19,500 will need a close watch.
Asian markets are trading mixed. Hang Seng (17,577) and Shanghai Composite (3,112) are up 0.3 and 0.6 per cent respectively. Nikkei 225 (32,187) and Kospi (2,455) on the other hand are down 0.4 and 0.3 per cent respectively.
In the US, the Dow Jones Industrial Average (33,618.88) was beaten down badly. The index fell over a per cent yesterday. The bias is negative. The Dow Jones can fall to 33,500-33,300 in the coming days. Thereafter it will have to be seen if a reversal is happening or not.
Nifty 50 Futures
The Nifty 50 September Futures (19,557) is down 0.6 per cent. The outlook is bearish. Immediate resistance is at 19,580. Above that, strong resistance is in the 19,630-19,650 region which can cap the upside incase any intraday bounce is seen. The contract can fall to 19,500-19,450 in the coming sessions.
Traders can go short now and also on a rise at 19,580. Keep the stop-loss at 19,620. Trail the stop-loss down to 19,530 when the contract touches 19,510. Move the stop-loss further down to 19,505 when the contract falls to 19,490. Exit the shorts at 19,470
Supports: 19,500, 19,450.
Resistances: 19,580, 19,630.