Nifty 50 December Futures (18,269)
Sensex and Nifty 50 are under pressure following the global sell-off in equities and are trading down by a percent. Sensex is now trading at 61,218 and Nifty at 18,240. Both the indices have failed to sustain the bounce seen yesterday. This keeps the chances alive for the indices to fall more from current levels. Nifty can test 18,100-18,000. Thereafter a fresh rally is a possibility.
Global cues
There is a sea of red in the Asian markets. All major indices are down. Nikkei 225 (26,545.31), down 2.5 per cent has been beaten down badly. Hang Seng (19,089) and Kospi (2,328) are down over a percent. Shanghai Composite (3,087) is down 0.65 per cent.
In the US, the Dow Jones Industrial Average (32,757.54) has extended fall well below 33,000. The index is looking weak. It can fall further towards 32,500 and even 32,000 in the coming days.
Nifty 50 December Futures
The Nifty 50 December Futures (18,269) is down sharply by 1.2 per cent. The outlook is bearish. The contract can fall to 18,150-18,100 from current levels. Intraday resistances will be at 18,315 and 18,350. Above that, 18,400 will be the next important resistance.
The contract has to rise past 18,400 to ease the downside pressure. But that looks less likely at the moment.
Trading strategy
Traders can go short at current levels. Accumulate shorts at 18,305. Keep a stop-loss at 18,335. Trail the stop-loss down 18,260 as soon as the contract falls to 18,230. Move the stop-loss further down to 18,210 when the Nifty 50 December contract touches 18,190 on the downside. Book profits at 18,170
Supports: 18,150, 18,100
Resistances: 18,315, 18,350.