Nifty 50 and Sensex were volatile today. Nifty opened with a sharp gap at 20,110 points but then fell sharply, giving up all the gains. The index is currently at 19,942 points, down 0.25%.
Nifty has important support in the 19,900-19,850 area. There is a good chance that the index will sustain above this support area and recover again. Such a rally may take Nifty to 20,000-20,100 points again. Price action near 19,850 needs to be closely watched. A fall below 19,850 could drag the index down to 19,800 or even lower.
In Asia, all major indexes were in the green except for the Kospi (2,540 points, down 0.66%). The Nikkei 225 Index (32,727 points) rose 0.8%, while the Hang Seng Index (18,098 points) and Shanghai Composite Index (3,144 points) edged up 0.01% and 0.04% respectively.
In the United States, gains in the Dow Jones Industrial Average (34,663.72) are slowing. It must break through immediate resistance at 34,700 to gain momentum. Only in this case would the outlook convincingly turn bullish and push the Dow to 35,000 points and beyond. Otherwise, the index may fall back to 34,400-34,200 or even lower.
Nifty 50 Futures
Nifty 50 September futures (20,009) fell 0.15%. Intraday support lies in the 19,980-19,970 area. If the contract can sustain above this support area, a move back to 20,100-20,150 is possible in the coming sessions.
If it falls below 19,970 points, the downside for the day may expand to 19,920-19,900 points.
We are optimistic that the contract will remain above 19,980-19,970 and rebound.
You can now go long and accumulate up to 19,985 points. Stop loss remains at 19,960. Once the contract rises to 20,045, raise the stop to 20,020. When the contract hits 20,095, move the stop further up to 20,075. Exit the long position at 20,120.
support: 19,970, 19,900
resistance: 20,050, 20,135