Nifty Call: Go long on dips at 17,530 and accumulate at 17,510 with a stop-loss at 17,480.

Indian equity indices are managing to hold on to the sharp recovery seen on Tuesday. Sensex and Nifty 50 are up 0.22 per cent each today. Sensex is trading at 59,135 and Nifty 50 is at 17,600

On the global front, the Dow Jones Industrial Average rose above 34,000 in the intraday trades but failed to sustain higher. It gave up all the gains made during the day and had closed lower at 33,919.84 yesterday. The Dow looks vulnerable to test 33,000.

Asian equities are trading mixed. Nikkei 225 is trading lower and is down 0.5 per cent while Hang Seng and Shanghai Composite indices are trading in red and are down in the range of 0.3 per cent-0.5 per cent today.

All eyes will be on the outcome of the US Federal Reserve meeting tonight. It will be crucial to watch as it can set the tone for the market going forward.

Futures: The Nifty 50 Futures contract has come-off from the day’s high of 17,605 and is trading flat at 17,565. Good intraday supports are at 17,520 and 17,490. Though an intraday dip to test these supports cannot be ruled out, a break below 17,490 is less likely. Dips to these supports are likely to see fresh buyers coming into the market. The contract can bounce back towards 17,600 again and extend the upside to 17,650-17,700 in the coming sessions.

Traders can wait for dips and go long at 17,530 and accumulate at 17,510. Stop-loss can be placed at 17,480 for the target of 17,620. Trail stop-loss to 17,555 as soon as the contract moves up to 17,575. Move the stop-loss further up to 17,575 as soon as the contract moves up to 17,595.

The contract will come under pressure for a deeper fall if it breaks below 17,490. Such a break can drag it to 17,400 again.

Strategy: Wait for dips and go long at 17,530 and accumulate at 17,510. Keep the stop-loss at 17,480. Trail Stop-loss to 17,555 as soon as the market moves up to 17,575.

Supports: 17,520 and 17,490

Resistances: 17,620 and 17,670

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