Nifty 50 and Sensex have come down after opening higher. The benchmark indices have given back all their opening gains and are down about 0.17 per cent each. Sensex is trading at 63,282 and Nifty at 18,793.
Intraday support for the Nifty is around 18,700 which can be tested during the day. A bounce from there will keep the overall bullish view intact and take the index up to 18,800 again. A sustained rise past 18,800 will take the Nifty up to 19,000-19,100 this week.
On the other hand, a break below 18,700 can increase the selling pressure. Such a break can drag the Nifty down to 18,650-18,600.
Global indices
Major Asian markets are in red. Nikkei 225 (33,302) and Hang Seng (19,726) are down over a per cent each.
In the US, the Dow Jones Industrial Average (34,299) had declined on Friday. The US markets are closed today. The Dow Jones has good support at 34,200 and 34,000.
As long as it sustains above 34,000, the outlook is bullish to breach 34,500. Such a break can take it up to 35,500 in the coming weeks.
Nifty 50 Futures
The Nifty 50 June Futures (18,860) is down about 0.2 per cent. It has declined below a key support level of 18,900. The contract can fall to 18,800-18,780 during the day. Thereafter, it will have to be seen if it can bounce back or not.
A bounce from around 18,800 will take the contract up to 18,800 again. But a break below 18,800 can drag it down to 18,730-18,700.
Trading strategy
Traders with a high-risk appetite can go short now with a tight stop-loss at 18,880. Trail the stop-loss down to 18,845 as soon as the contract falls to 18,835. Exit the shorts at 18,820.
Please note that as mentioned above, there could be high chances of a reversal from around 18,800. So, this trade is only for traders who can take high risks.
- Supports: 18,800, 18,780.
- Resistances: 18,900, 18,950.