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Nifty 50 June Futures (18,737)
Nifty 50 and Sensex are under pressure. Both the indices opened with a gap-down and are trading lower. The price action this week indicates lack of strong buyers to take the Nifty above 18,900. The support in the 18,650-18,600 region has been tested today and is holding well. The Nifty has risen back from the low of 18,647. It is important to see if it can sustain this bounce or not. As such, the price action and closing today will be significant for the movement going forward.
Global indices
All major Asian indices are in red. Nikkei 225 (32,606) and Hang Seng (18,845) are down about 2 per cent each.
In the US, the Dow Jones Industrial Average (33,946) continues to remain lower. It can test 33,700 in the near-term. The price action thereafter will need a close watch to see if the index is bouncing back or not.
Nifty 50 Futures
The Nifty 50 June Futures (18,737) is down about 0.5 per cent. The contract tested the support at 18,685 and has risen back well. Key intraday resistance is at 18,785. The contract has to breach this hurdle to ease the downside pressure. Such a break can take the Nifty 50 June Futures contract up to 18,900. Else the contract can fall back to revisit the support at 18,685.
Trade Strategy
We suggest traders to stay out of the market. Watch how the contract closes the week today which can give some cue on the next move. Accordingly, trades can be taken next week.
Supports: 18,685, 18,600
Resistances: 18,785, 18,900
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