Nifty 50 (19,415) began today’s session with a gap-down following bearish cues from the Asian market. The benchmark index is down 0.6 per cent so far.

Among the Asian majors, Nikkei 225 (30,700), ASX 200 (6,880), Hang Seng (17,100) and KOSPI (2,410) are down between 0.8 and 2.2 per cent.

Supporting the bearish bias, the advance/decline ratio of Nifty 50 stands at 9/41. Besides, all mid and small-cap indices and all sectors too are in the red.

Nifty PSU Bank and Nifty Private Bank are the top losers among the sectors as they are down 1.4 and 1.2 per cent, respectively.

In addition to the above, the broad trend is bearish as well. Thus, the probability of Nifty 50 and Nifty futures falling further is high.

Nifty 50 futures

The October futures contract of Nifty 50 opened today’s session lower at 19,474 versus yesterday’s close of 19,571. It is currently hovering around 19,460, down 0.6 per cent.

While the contract has slipped below the support at 19,500, the price region of 19,450-19,500 is a support. On the back of the prevailing strong downward momentum, if Nifty futures fall below 19,450, it can fall to 19,400. A breach of this level can drag Nifty futures further to 19,300.

On the other hand, if the contract recovers on the back of the above-mentioned support, it could rally to 19,600 from the current level. A breakout of 19,600 can lift Nifty futures to 19,700.

Trading strategy

Although the overall bias is bearish, Nifty futures has a support at 19,450. At the same time, there might not be a recovery given the broader bearish sentiment. Therefore, traders can stay on the side-lines today.

Supports: 19,450 and 19400

Resistance: 19,500 and 19,600

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