Nifty 50 and Sensex are trading lower following the weakness in global equities. Both the indices are down about 0.45 per cent each. Sensex is trading at 61,633 and Nifty at 18,217.
Nifty has crucial support near current levels at 18,200. This support has been holding well over the last few days. If the index manages to sustain above 18,200 and bounces back, a rise to 18,300-18,350 can be seen again.
But, if the Nifty breaks below 18,200, it can fall to 18,100 and even 18,000 again. So, the price action around 18,200 today will need a very close watch.
Global indices
In Asia, barring Nikkei 225 (29,348, up 0.76 per cent), other major indices are in red. Shanghai Composite (3,296), Hang Seng (19,718) and Kospi (2,479) are all down in the range of 0.13-0.40 per cent.
In the US, the Dow Jones Industrial Average (33,309.51) continues to fall. Crucial support is at 33,000. A break below it can drag the Dow Jones to 32,500 going forward.
Nifty 50 May Futures
The Nifty 50 May Futures (18,264) is down about 0.5 per cent. The contract made a low of 18,215 and is attempting to bounce back.
Important support is at 18,200. A break below it will be bearish. Such a break can take the Nifty 50 May Futures contract down to 18,170 and 18,120.
On the other hand, if the contract manages to sustain above 18,200, it can continue to trade in the broad range of 18,200-18,400 for some more time. In that case, the bias will continue to remain bullish to breach 18,400 and rise to 18,500 and higher.
Trade strategy
We suggest traders stay out of the market. Wait and watch how the market closes for the week today. Fresh trades can be taken accordingly next week.
- Supports: 18,200, 18,170.
- Resistances: 18,300, 18,400.