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The Indian benchmark indices are trading marginally lower. The Sensex and Nifty 50 have come-off from their day’s high giving back all the gains. Sensex (58,745) and Nifty (17,536) are down 0.03 per cent each. The price action since Thursday indicates lack of strong follow-through buying in the market.
Nifty has to rise past 17,750 decisively to ease the downside pressure and rise to 18,000 levels again. Support is at 17,470, A break below this can increase the downside pressure and drag it to 17,400 and even lower levels. Overall, the immediate outlook is mixed and it lacks clarity. It is better to stay out of the market now.
Global indices
The major Asian indices are down. Nikkei 225 (27,618), Shanghai Composite (3,183), Hang Seng (19,378) and Kospi (2,413) are all down in the range of 0.04-1.13 per cent.
In the US, the Dow Jones Industrial Average (31,656, up 0.46 per cent) has managed to bounce yesterday. Though there is room to move up further from here, strong resistance is in the broad 32,000-32,500 region. As long as the Dow remains below 32,500 the broader view will remain negative to see 30,000 on the downside.
Nifty Futures
The Nifty 50 September Futures (17,551) is down about 0.2 per cent. It has been struggling to rise past its 17,800-17,850 resistance zone over the last couple of trading days. Support is at 17,480. A break below this level will see 17,400 and even 17,200 in the coming sessions.
The contract has to breach 17,850 decisively to become bullish and rise to 18,000. Until then the immediate outlook will continue to remain mixed.
Though our preference is to see a break below 17,480 and a fall to 17,400 and 17,200, we prefer to stay out of the market without any trades today. We will see how the contract closes for the week today and then take fresh calls next week.
Trading Strategy: Prefer to continue staying out of the market although the bias is negative to see a break below 17,480 and a fall to 17,400 and lower.
Supports: 17,480, 17,400
Resistances: 17,735, 17,850
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