Nifty 50 July Futures (19,802)
Nifty 50 and Sensex have recovered well from their Tuesday lows. Both the indices are up today by about 0.65 per cent. Sensex is trading at 66,850 and Nifty at 19,812.
Nifty has risen above 19,800 now. While this sustains, the bias is bullish to see a further rise to 19,900 and even 20,000 in the coming sessions. Strong support for the Nifty is at 19,700. The index will come under pressure again only if it falls below 19,700. In that case, a revisit of 19,600 levels is possible.
Global Indices
In Asia, barring the Nikkei 225 (32,695), other major indices are in red. In the US, the Dow Jones Industrial Average (35,438) closed marginally higher on Tuesday.
The Dow Jones has a key resistance at 35,600. It has to breach this resistance to move further up to 36,000 going forward. Else, a fall back to 35,000 and even lower levels is possible in the coming days.
The US Federal Reserve meeting outcome is due tonight. A 25-basis points rate hike is largely factored in the market. It is important to see what the central bank says about its future plan in the interest rate front. That will be the key driver for the market going forward.
Nifty 50 Futures
The Nifty 50 July Futures (19,802) is up 0.2 per cent. The contract has good intraday support at 19,750. As long as it trades above this support, the outlook will remain bullish. A rise to 19,850 and higher levels is possible in the coming days.
In case the contract breaks below 19,750, it can fall to 19,660.
From the charts, it looks like the contract can stay well above 19,750 and rise further higher in the coming sessions.
Trade Strategy
Traders can go long on dips at 19,770. Keep the stop-loss at 19,730. Trail the stop-loss up to 19,790 when the contract moves up to 19,810. Move the stop-loss further up to 19,820 when the contract touches 19,835. Exit the long positions at 19,850.
Supports: 19,750, 19,700
Resistances: 19,850, 19,900