28/05/2019 MUMBAI: The new breand identity for Nifty Indices launch at the National Stock Exchange in Mumbai on May 28, 2019. Photo By. Paul Noronha | Photo Credit: PAUL NORONHA
The Sensex and the Nifty 50 are trading lower today. Both the indices opened with a gap-down today and are trading in the red. Nifty has declined below 18,000 and keeps the overall bearish view intact. It is trading at 17,966, down 0.43 per cent for the day so far. As long as it stays below 18,000, the index will remain under pressure for a fall to 17,800-17,500 in the coming days. Sensex is down 0.42 per cent and is trading at 60,178. A break below 60,000 can drag it to 59,500-59,000 in the short-term.
In Asia, its sea of red all over. All major indices are trading in the red. China’s Shanghai Composite (3,469) and Hong Kong’s Hang Seng index are down over 1 per cent each. Nikkei 225 (29,130) and Kospi (2,935) are down 0.54 per cent and 0.93 per cent respectively. In the US, the Dow Jones Industrial Average (36,319) had also closed in the red yesterday. The index was down 0.31 per cent. However, the Dow will remain bullish to test 37,000 as long as it stays above 36,000. Only a strong fall below 36,000 will bring the index under pressure and negate the chances of seeing 37,000 on the upside.
Futures
The Nifty 50 November Futures (17,965) has declined below the key support level of 18,000. The overall bearish outlook is intact. We expect the contract to see a fall to 17,800 and even 17,600 in the coming days. Traders can initiate fresh short positions at current levels and also accumulate shorts on a rise at 17,990. Stop-loss can be placed at 18,070. Trail the stop-loss down to 17,940 as soon as the contract moves down to 17,890. Move the stop-loss further lower to 17,880 as soon as the contract moves down to 17,840. Book profits at 17,810.
The contract will have to break above 18,000 and see a subsequent rise past 18,040 to regain the bullish momentum and move up to 18,100-18,200 levels again.
Strategy
Go short now and on a rise at 17,990. Keep the stop-loss at 18,070. Trail the stop-loss down to 17,940 as soon as the contract moves down to 17,890. Move the stop-loss further lower to 17,880 as soon as the contract moves down to 17,840. Book profits at 17,810.
Supports
17,800 and 17,600
Resistances
18,000 and 18,040
Published on November 10, 2021
Comments
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.