The Indian equity benchmark indices, the Nifty 50 and the Sensex after opening with a gap-up, gave away the gains and are now down by about 0.1 per cent each for the day. The Nifty is at 17,115 and the Sensex is at 57,500. The domestic indices are down despite the major Asian indices staying in the green. The Nikkei 225 has gained 1.3 per cent and the Hang Seng has gained nearly 0.4 per cent.

Markets to remain firm, as there are no signs bulls tiring

The market breadth of the Nifty 50 index is slightly on the bearish side as the advance-decline ratio currently stands at 23-27. However, the mid and small-cap indices are either flat or marginally up so far. Among the sectoral indices, the Nifty Realty index is the top gainer, up by 3.7 per cent followed by the Nifty Consumer durables, up by 2.2 per cent. On the other hand, the Nifty IT and Metal are down by 1.2 and 1.1 per cent, respectively.

Nifty call: Go long with stop-loss at 16,990

Futures: The September futures contract of the Nifty 50 opened at 17,122 versus yesterday’s close of 17,150. Although it rallied to hit an intraday high of 17,228, it lost the gains and is now hovering at 17,125. If it breaches 17,150, then the contract can again establish a rally in which case it will most probably retest the intraday high of 17,228. If this level is breached, it can touch 17,250. But if the contract falls, it has a support at 17,100. Subsequent supports are at 17,050 and 17,000.

Given the prevailing conditions, traders can stay on the side-line and wait for the break of 17,100 or 17,050 and initiate trade along the direction of the break with a tight stop-loss.

Strategy: Tread with caution as the contract is trading within key levels

Supports: 17,100 and 17,050

Resistances: 17,150 and 17,228

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