Sensex and Nifty 50 are trading weak with both the indices down about 0.6 per cent each. Sensex is at 60,640 and Nifty is trading at 18,045. Immediate support for the Nifty is at 18,000. Below that 17,950 and 17,900 extend good supports. Nifty will come under huger pressure only if it breaks below 17,900. In that case, a fall to 17,800 and even 17,600 can be seen. So, it will be important to see the price action and closing figure for the day to guage the next direction of move.

Global cues

All major Asian indices are trading in red following the sharp fall in the US markets overnight. Hang Seng (16,067) and Nikkei 225 (27,438) are down 1.8 and 1 per cent, respectively. Shanghai Composite (3,035) and Kospi (2,411) are down 0.4 and 0.5 per cent, respectively.

In the US, the Dow Jones Industrial Average (32,513.94) tumbled 1.95 per cent yesterday. Failure to bounce back from the support at 32,400 will be bearish and a fall to 31,500 cannot be ruled out in that case.

Nifty 50 Futures

The Nifty 50 November Futures (18,095) is down 0.65 per cent. The support at 18,120 has been broken. As long as the contract stays below 18,120, a further fall to 18,000 cannot be ruled out today.

A decisive rise past 18,120 is needed for the Nifty Futures contract to ease the downside pressure and rise towards 18,200 again.

Trading Strategy

Traders with high-risk appetite can go short at current levels. Stop-loss can be kept at 18,125. Trail the stop-loss down to 18,080 when the contract falls to 18,060. Move the stop-loss further down to 18,045 when the contract touches 18,030 on the downside. Book profits at 18,020.

Supports: 18,000, 17,930

Resistances: 18,120, 18,200

Related Topics