The Indian equity markets have opened the week on a positive note. The Sensex and Nifty 50 have risen sharply and are trading up over a per cent today. Sensex is trading at 59,520, up 1.2 per cent. Nifty is up 1.19 per cent and is trading at 17,740.

Sensex and Nifty have resistances coming up near current levels. Sensex has resistance at 59,600 and for Nifty it is at 17,800. The outlook will turn bullish completely only if the indices break above these hurdles. A pull-back from these resistances can keep the indices under pressure and drag them lower again in the coming days.

The Asian markets are trading mixed. Shanghai Composite index is up 0.9% while the Hang Seng, KOSPI and Nikkei 225 indices are trading sharply lower. All these three indices are down over a per cent.

Futures: The Nifty 50 October Futures (17,735) contract is up 1.17 per cent. There is an immediate resistance at 17,745 and a next important one is in the 17,800-17,820 region. The chances are high for the contract to reverse lower from either 17,745 itself or from the 17,800-17,820 region. Such a reversal can take the contract lower to 17,600 and 17,500 levels again.

Traders can wait on the sidelines for now. Wait for rallies and go short at 17,790 and accumulate shorts at 17,810. Keep the stop-loss at 17,840 for the target of 17, 670. Trail the stop-loss lower to 17,760 as soon as the contract moves down to 17,720. Move the stop-loss further down to 17,720 as soon as the contract moves down to 17,690.

The contract will have to rise past 17,820 to negate the chances of a fall-back and move up towards 16,000 levels again.

Strategy: Go short on rallies at 17,790. Accumulate shorts at 17,810 with a stop-loss at 17,840 for the target of 17,670.

Supports: 17,630 and 17,580

Resistances: 17,745 and 17,800

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