The Indian benchmark indices are trading lower today. Both the Sensex and Nifty 50 are down 0.19 per cent each. Nifty is at 17,910 and Sensex at 60,150. The immediate outlook is mixed. Nifty might now need a strong rise past 18,000 to gain fresh momentum and rally further. Else, there may be a near-term dip to 17,830-17,800 and even 17,750. Broadly, for now, 17,750-18,000 can be the trading range for the next few sessions. A breakout on either side of this range can then determine whether Nifty will go up to 18,100-18,400 or fall to 17,600-17,400
All major Asian indices are trading in red. Nikkei 225 (28,952), Shanghai Composite (3,276), Hang Seng (19,822) and Kospi (2,503) are down by 0.47-0.91 per cent. In the US, the Dow Jones Industrial Average (33,980, down 0.5 per cent) has also come off slightly. Failure to rise beyond 34,000 will be a negative, and it will remain vulnerable to test 33,000 again.
The Nifty 50 August futures (17,930) is down 0.25 per cent. Like the underlying Nifty 50, the futures contract will also need to break above 18,000 to gain fresh momentum and rally. Else, there may be a dip to 17,830-17,800 in the coming sessions. The 17,800 level is an important support. A break below it will signal a turnaround and drag the contract lower to 17,600 and beyond in the coming days. For now, we expect the Nifty 50 August futures contract to trade in a range of 17,800-18,000. A breakout on either side of 17,800-18,000 will determine the next move.
Trading strategy: Stay out of the market
Supports: 17,800, 17,600
Resistances: 18,000, 18,100