Nifty Call: Go long with a stop-loss at 17,375

Sensex and Nifty 50 have recovered well from Monday’s low. The view of seeing a reversal from the resistance at 17,370 on the Nifty Futures contract mentioned yesterday has gone wrong. The Dow Jones Industrial Average recovering yesterday after having fallen sharply the whole of last week is supporting the Indian indices. Nifty (17,420) has broken above 17,400 and is looking bullish with support in the 17,400-17,380 region. Sensex (58,410) has support at 54,300. From a bigger picture 54,000-53,900 region is a strong support which will have to be broken for the index to come under pressure for a fresh fall. On Nifty, 17,250-17,200 is a strong support zone that must be broken to turn bearish.

Futures: The Nifty September Futures (17,415) contract has risen past the key resistance level of 17,370 which we had expected to hold yesterday. 17,390-17,370 can be a good intraday support zone for the contact. As long as the contract sustains above this support zone, a fresh rise to 17,480-17,500 can be seen in the coming sessions. Traders can go long now and accumulate on dips at 17,395 with stop-loss at 17,375 for the target of 17,475. The view will go wrong if the Nifty Futures contract falls below 17,370. Such a break can drag it down to 17,320-17,300.

Strategy: Go long now and accumulate at 17,395. Keep the stop-loss at 17,375 for the target of 17,475.

Supports: 17,390 and 17,370

Resistances: 17,440 and 17,480

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