Nifty 50 and Sensex are trading lower. After rising well over the last three trading days, the benchmark indices have taken a pause. Both indices are down about 0.35 per cent each. Sensex is at 64,712 and Nifty at 19,350.

The 19,400-19,500 resistance zone is holding well on the Nifty for now. As long as the index trades below 19,400, a dip to 19,300-19,280 is a possibility in the coming sessions. The price action thereafter will need a close watch. A strong bounce from the 19,300-19,280 region will have the potential to take the Nifty back up to 19,400.

Global indices

Asian markets are all in red. Kospi (2,427) has tumbled 3 per cent. Nikkei 225 (32,316) and Hang Seng (17,696) are down over a per cent each.

The Dow Jones Industrial Average (34,095) in the US was stable on Monday — 34,250 is an important resistance for the index. A strong rise past this hurdle is needed to boost the bullish momentum. Else the Dow will remain vulnerable to break 34,000 and fall to 33,500 and lower.

Nifty 50 futures

The Nifty 50 November futures (19,466) is down 0.1 per cent. The trend is still up. One more leg of rise, to test 19,550-19,580 on the upside, is still a possibility before a fresh fall. But there can be a test of 19,400-19,380 initially, before the above-mentioned rise to 19,550-19,580.

Also read
ABC Vector

Sensex, Nifty decline in early trade after 3 days of rally

Getty Images/iStockphoto

Rupee slips 5 paise to 83.26 against firm dollar in early trade

Domestic equities rose for the third straight session on Monday amid positive global cues aided by a recovery in global bond markets 

Indian equities surge on positive global cues

Trade strategy

Traders can wait for dips. Go long at 19,420. Keep the stop-loss at 19,370. Trail the stop-loss up to 19,435 as soon as the contract moves up to 19,455. Move the stop-loss further up to 19,470 when the contract touches 19,490. Exit the long positions at 19,520.

Supports: 19,380, 19,300

Resistances: 19,500, 19,580

Related Topics