Nifty 50 and Sensex are trading marginally lower. Sensex is at 65,912, down 0.05 per cent and Nifty at 19,590 is down 0.03 per cent. It looks like the benchmark indices are not getting a strong follow-through rise.
Nifty has support in the 19,630-19,600 region which is holding well for now. But at the same time, the index has to breach 19,700 to strengthen the bullish case and rise further. So, we will have to wait and watch.
Global indices
Asian markets are trading mixed. Hang Seng (19,270) has tumbled over a per cent while Shanghai Composite (3,269) and Kospi (2,580) are trading flat. Nikkei 225 (32,346) is up by about 0.3 per cent.
In the US, the Dow Jones Industrial Average (35,473.13) had begun the week on a strong note. The index had surged over a per cent on Monday. The Dow is sustaining well above 35,000 for now. However, it has to get a decisive rise past 35,600 to move up to 36,000. So, it is important for the Dow Jones for now to get a strong follow-through rise from here.
Nifty 50 Futures
The Nifty 50 August Futures (19,646) is marginally down today. The immediate outlook is unclear. Support is in the 19,620-19,600 region and resistance is in the 19,670-19,685 region. A breakout on either side of 19,600 or 19,685 will determine the next move.
A break above 19,685 will be bullish to see 19,780. On the other hand, a break below 19,600 can drag the contract down to 19,550 and lower.
Trade strategy
Go long only on a break above 19,685. Keep the stop-loss at 19,645. Trail the stop-loss up to 19,705 as soon as the contract moves up to 19,725. Move the stop-loss further up to 19,745 when the contract touches 19,760. Exit the longs at 19,780.
Supports: 19,600, 19,550
Resistances: 19,685, 19,780