The Sensex and the Nifty50 have opened the week on a positive note. Sensex is up 0.6 per cent and is trading at 60,420. Nifty is up 0.7 per cent and is trading at 18,020. Both Sensex and Nifty have room to move further up from here towards 61,000 and 18,100-18,200 respectively.

In Asia most of the indices are in the green. Japan’s Nikkei 225 has recovered well today after getting beaten down over the last two consecutive weeks. The index is up 1.46 per cent today. China’s Shanghai Composite is up 0.21 per cent. Hong Kong’s Hang Seng index is sharply up over 2 per cent today. Korea’s KOSPI is down slightly by 0.1 per cent.

Futures

The Nifty50 futures contract is up 0.75 per cent and is trading at 18,032. The outlook is bullish and the futuers could see 18,100 today. A break above 18,100 can take it further up to 18,200 in the coming sessions. Strong support lies in the 17,920-17,900 region. Traders can go long now and accumulate on dips at 17,935. Stop-loss can be placed at 17,910. Book profits at 18,170. Trail the stop-loss to 18,055 as soon as the contract moves up to 18,075. Move the stop-loss further up to 18,085 as soon as the contract touches 18,110.

The contract will come under pressure for a fall only on a break below 17,900. Such a break can drag it to 17,830 and 17,780.

Strategy

Go long now and on dips at 17,935. Keep the stop-loss at 17,910. Book profits at 18,170. Trail stop-loss to 18,055 as soon as the contract moves up to 18,075.

Supports

17,920 and 17,900

Resistances

18,100 and 18,200

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