Nifty 50 July futures (19,445)
The Nifty 50 and Sensex are trading flat. The Sensex is trading at 65,425 and Nifty at 19,385. The price action since Tuesday indicates lack of a strong follow-through rise in the benchmark indices. But at the same time, strong selling is not happening, which is aiding in limiting the downside. Overall, it indicates indecisiveness in the market. As such, we will have to wait and watch the movement for some time to get clarity.
On the charts, Nifty has strong support at 19,300 and 19,200. As long as the index sustains above 19,200, the outlook will remain bullish. Nifty has the potential to rise to 19,500-19,700 first, and then to 20,000 eventually, in the coming weeks. As such, dips can be considered a good opportunity to buy the Nifty.
Global indices
All the major Asian indices are in the red. The Hang Seng (19,147), down 1.4 per cent, leads the laggards. Nikkei 225 (33,280), Kospi (2,583) and Shanghai Composite (3,228) are all down in the range of 0.35-0.5 per cent.
The US markets were closed on Tuesday on account of a public holiday.
Nifty 50 futures
The Nifty 50 July futures (19,445) is down marginally by 0.06 per cent. The immediate outlook is mixed. 19,350-19,500 can be the broad trading range. A breakout on either side of this range will determine the next move.
The bias is bullish. As such we can expect the contract to break above 19,500, if not today but eventually. Such a break can take the contract up to 19,600 and higher.
On the other hand, a break below 19,350, though less likely, can drag the contract down to 19,250-19,200.
Trade Strategy: Traders can stay out of the market and wait for the range breakout for clarity on the next direction of move.
Supports: 19,400, 19,350
Resistances: 19,480, 19,500