Sensex and Nifty 50 have recovered well from their day’s low are trading flat now. Nifty has risen back from its low of 18,347 and Sensex has bounced from 61,676. Nifty is now trading at 18,498 and Sensex at 62,163.

The support at 18,360 on the Nifty seems to be holding well. It will have to be seen if the index can sustain this bounce and get a strong follow-through buying. A decisive break below 18,360 will increase the downside pressure. Such a break can drag it down to 18,200-18,100 in the coming days. The price action in the coming sessions will need a close watch.

Global cues

All Asian major indices are in red. Hang Seng (19,525) has been beaten down the most. The index is down 1.88 per cent. Nikkei 225 (27,846), Shanghai Composite (3,186), and Kospi (2,374) are all down in the range of 0.2-0.65 per cent.

In the US, the Dow Jones Industrial Average (33,476) had declined on Friday. It seems to lack strong follow-through buying. The chances are looking high for the Dow to test 33,000 first and then see a fresh leg of rally.

Nifty 50 Futures

The Nifty 50 December Futures (18,619) is trading marginally higher by 0.2 per cent now. The contract has risen back sharply from the low of 18,456.

Intraday support is at 18,590. If the contract manages to sustain above this support, the chances are high to see a further rally to 18,650 and 18,700 in the coming sessions. In case if the contract declines below 18,590, it can fall back to 18,550-18,500 again.

Trading Strategy

Stay out of the market. We prefer to wait and see how the market closes today to get a clear cue on the direction of move.

Supports: 18,590, 18,550

Resistances: 18,650, 18,700