Nifty 50 July futures (19,400)
The Nifty 50 and Sensex have come down sharply from their intra-day highs, giving back all the initial gains. The benchmark indices are trading flat now. The Sensex is at 65,248, and the Nifty at 19,326.
Support for the Nifty is around 19,300. If it manages to sustain above this support to bounce back above 19,350, a rise to 19,400-19,450 is possible during the day. But a break below 19,300 can drag it down to 19,250 and lower. As such, the price action around 19,300 will need close watch.
Global indices
Asian markets are trading mixed. The Nikkei 225 and Kospi are down, while the Hang Seng and Shanghai composite are in the green.
In the US, the Dow Jones Industrial Average (34,418) remained stable on Monday, to close the truncated trading day flat. The US markets are closed today. Broadly, the Dow Jones is bullish to see 35,500 on the upside in the coming weeks. A break above 34,500 can trigger this rise.
Nifty 50 futures
The Nifty 50 July futures (19,400) is marginally down by 0.05 per cent. The contract made a high of 19,473.90 and has declined, giving back all its gains. Failure to rise above 19,430 from the current levels can drag the Nifty 50 July futures contract down to 19,350-19,330 during the day. Thereafter, the contract can reverse higher again, toward 19,400-19,450 and even higher, in the coming sessions.
The 19,350-19,330 is a strong support zone that can limit the downside for the day. The outlook will turn negative only if the contract declines below 19,330. In such a scenario, a fall to 19,270 and 19,230 is a possibility.
Trade strategy
Traders can wait for dips and go long at 19,360 and 19,340. Keep the stop-loss at 19,310. Trail it up to 19,375 as soon as the contract moves up to 19,410. Move the stop-loss further up to 19,405 when the contract touches 19,425. Exit the long positions at 19,440.
Supports: 19,330, 19,270
Resistances: 19,430, 19,500