Nifty Call: Go long on dips at 17,705

The surge in Sensex and Nifty 50 continues. The Sensex is trading at 59,710 and is up 0.95 per cent. Nifty 50 is up 0.83 per cent and is trading at 17,774. The Nifty has room to move up further towards 17,850-17,875 in the near-term. The Indian indices continue to outperform the global peers. In Asia, the Nikkei 225 and Hang Seng indices are up 0.5 per cent each while the Shanghai Composite index is down 0.6 per cent today.

The Dow Jones Industrial Average was down 0.18 per cent. The index has closed at 34,751. It has been stuck in between 34,500 and 35,000 all through this week. 34,500 is a crucial support for the Dow which must hold to avoid a deeper fall from here.

Futures: The Nifty 50 September futures contract is up 0.85 per cent. It is currently trading on a strong note and is poised at 17,759. There is room for a further rise to 17,950-18,000 in the coming days. The contract made a high of 17,800 and has come-off from there. A further dip to 17,700 during the day cannot be ruled out. However, we can expect the contract to reverse higher again from 17,700 and revisit 17,800 levels. It will also keep the overall bullish view intact of seeing 17,950-18,000 on the upside eventually. Traders can wait for dips and go long at 17,705. Stop-loss can be placed at 17,670 for the target of 17,785. Trail the stop-loss up to 17,725 as soon as the market moves up to 17,750. Move the stop-loss further up to 17,745 as soon as the market moves up to 17,760.

Strategy: Go long on dips at 17,705 with a stop-loss at 17,670 and for the target of 17,785. Trail stop-loss up to 17,725 as soon as the market moves up to 17,750.

Supports: 17,700 and 17,670

Resistances: 17,800 and 17,950

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