Sensex and Nifty 50 are trading in the green today. Nifty 50 is at 17,958, up 0.39 per cent. Sensex is up 0.34 per cent and is trading at 60,234. Market might remain stable today as the rest of the week is closed for Diwali.

Also, the market will be waiting for the US Federal Reserve’s monetary policy meeting outcome tonight. However, the Indian market will get the impact of the Fed decision next week only on Monday when the market re-opens. Although there is room for a near-term rise, the broader view is bearish, and the Sensex and Nifty are more likely to see a fresh fall next week.

In the US the Dow Jones Industrial Average (36,052) has entered into its 36,000-36,200 resistance zone. It is important to see if the index breaks above 36,200 or not. Inability to breach 36,200 can drag the Dow down to 34,500-34,000 in the coming weeks. That will be negative for the Indian markets also.

In Asia, most major indices are trading in the red. Nikkei 225, Shanghai Composite, Hang Seng, Kospi are all down today in the range of 0.4-1.25 per cent.

Futures: The Nifty 50 Futures November Futures contract is trading up 0.39 per cent. Immediate resistance is at 18,040. A strong break above this resistance is needed for the contract to move up towards 18,150. The level of 18.150 is a strong resistance which can cap the upside and trigger a fresh fall going forward. A break above 18,150 looks less probable.

The market is more likely to be stable and range bound today ahead of the Fed meeting tonight and the holidays for the rest of the week on account of Diwali. So, traders can stay out of the market today and wait to take fresh short positions next week.

Strategy: Stay out of the market.

Supports: 17,950 and 17,850

Resistances: 18,040 and 18,150

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