The Indian benchmark indices opened Friday's session flat and have held steady so far. The Nifty 50 is at 17,660 and the Sensex at 59,335. Nevertheless, the major Asian indices, except ASX 200 (down by 0.7 per cent), are up today. Nikkei 225, Hang Seng and KOSPI are up between 0.1 and 2.4 per cent.

The market breadth of the Nifty 50 indicates a bullish bias as the advances/declines ratio is at 28/22 and the mid- and small-cap indices are up. The Midcap 50 and the Smallcap 50 are up by 0.6 and 0.4 per cent, respectively.

That said, most of the sectoral indices are in the red, led by the Nifty Healthcare index, down by 1.8 per cent. Among the few gainers, the Nifty Oil & Gas is the top performer, up by 1.7 per cent.

Overall, given the bullish bias today, the benchmarks can be expected to gain from here.

Futures: August futures of the Nifty 50 index opened today’s session marginally lower at 17,675 as against yesterday’s close of 17,685. While it marked an intraday low of 17,621, it has managed to recover to 17,675 now.

Note that 17,620 is good support, where a rising trendline coincides. Therefore, until this level holds, the bulls will have an advantage over the bears.

We expect the contract to move up from the current level of 17,675. It can rally beyond the hurdle at 17,725 and touch 17,800. A breakout of this can lift Nifty futures to 17,800.

But if the support at 17,620 is invalidated, the contract’s nearest support is at 17,585. A breach of this level can drag the contract to 17,500.

Since the price action shows a bullish bias, we suggest traders go long at the current level of 17,675 and add more longs when the price moderates to 17,620. Place stop-loss at 17,570. When the contract rallies past 17,725, tighten the stop-loss to 17,620. Exit the longs if the price touches 17,800.

Strategy: Buy at the current level of 17,675 and add more longs when the price moderates to 17,620. Place stop-loss at 17,570. When the contract rallies past 17,725, tighten the stop-loss to 17,620. Exit the longs if the price touches 17,800.

Supports: 17,620 and 17,585

Resistances: 17,725 and 17,800

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