BL Research Bureau
The rally in the Indian benchmark indices continues. The Sensex and Nifty 50 are trading in green. Nifty is hovering just below the crucial level of 18,200. However, Sensex has risen past the key level of 61,000. Nifty is now trading at 18,194, up 0.76 per cent for the day. Sensex is up 0.85 per cent and is trading at 61,125. It will have to be seen if Nifty can rise past 18,200 decisively and the Sensex can sustain above 61,000. A strong rise past 18,200 will be bullish to see a further rise to 18,400 and higher levels. Sensex on the other hand can rise to 62,000 if it manages to sustain above 61,000. As such, the price action in the coming sessions will need a close watch.
Asian markets are trading in green. Nikkei 225 (28,741), Shanghai Composite (3,583), Hang Seng (24,279) and Kospi (2,966) are all up in the range of 0.4 to 2.3 per cent.
In the US, the Dow Jones Industrial Average (36,252.02) was up 0.51 per cent yesterday. The intermediate support at 35,500 is holding well as of now. It will have to be seen if the Dow can rise past 36,500 from here and delay the fall to 34,000 that we have been mentioning here for some time.
Futures: The Nifty 50 January (18,215) has risen above 18,200 and is up 0.75 per cent for the day so far. Yesterday we had mentioned 18,180-18,200 as the strong resistance zone and a possible downward reversal from there. We would want to wait and see if this break is a confirmed one or a false break out. As such we prefer to stay out of the market today and see how the contract closes to get clarity.
If the Nifty 50 January futures contract sustains well above 18,200, it can rise to 18,350-18,400 in the coming sessions. That will prove our overall bearish view in the market wrong. On the other hand, if the contract dips below 18,200 it can fall to 18,000-17,950.
Strategy: Stay out of the market to get clarity whether the break above 18,200 sustains.
Supports: 18,200 and 18,000
Resistances: 18,350 and 18,400
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.