Nifty Call: Go long now and on dips at 17,880 with stop-loss at 17,840

Gurumurthy K BL Research Bureau | Updated on September 24, 2021

Trail the stop-loss up to 17,935 as soon as the market goes up to 17,955

Sensex and Nifty 50 retain their momentum. The indices have risen further and are up in the range of 0.6-0.7 per cent. Sensex has breached the psychological 60,000 mark and is currently trading at 60,270. Nifty is trading at 17,929. The Sensex has room to test 60,500 and even 61,000 in the coming days. Nifty 50 on the other hand can test 18,100 on the upside. Will the indices reverse lower thereafter? We will have to wait and watch.

On the global front, the US and European markets closed on positive note yesterday. The Dow Jones Industrial Average (34,764.82) was up 1.48 per cent. It will have to be seen if the Dow can rise past 35,000 from here which is necessarily needed to negate the danger of seeing 33,000-32,000 on the downside.

Asian markets are trading mixed. Japan’s Nikkei 225 is up sharply over 2 per cent. Shanghai Composite and Hang Seng indices are trading flat while Kospi is down 0.15 per cent.

Futures: The Nifty 50 September Futures contract (17,910) has risen well above 17,900. The outlook is bullish to test 18,000-18,100. Key intraday supports are at 17,870 and 17,850. The contract will come under pressure for a fall only if it breaks below 17,850. Such a break can drag it to 17,800 and even lower.

Traders can go long at current levels and also accumulate on dips at 17,880. Stop-loss can be placed at 17,840 for the target of 18,050. Revise the stop-loss higher to 17,930 as soon as the contract moves up to 17,955. Move the stop-loss further up to 17,975 as soon as the contract moves up to 17,995.

Strategy: Go long now and accumulate on dips at 17,880. Keep the stop-loss at 17,840 for the target of 18,050. Trail the stop-loss up to 17,935 as soon as the market goes up to 17,955.

Supports: 17,870 and 17,850

Resistances: 17,935 and 18,000

Published on September 24, 2021

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