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BL Research Bureau
Nifty 50 September Futures (17,390)
As the major Asian indices have been trading in the green, the Indian equity benchmarks i.e., the Nifty 50 and the Sensex began the session with a considerable gap-up. While both indices rallied initially, it started to moderate and are now up by 0.25 per cent each for the day. The Nifty is at 17,365 and the Sensex is at around 58,270. Among the Asian majors, the Nikkei 225 is up by 1.8 per cent and the Hang Seng has gained 0.7 per cent.
Though not very positive, the market breadth of Nifty 50 is showing bullish bias as the advance-decline ratio is currently at 27-23. Like the benchmark indices, all the mid- and small-cap indices have gained between 0.3 and 1 per cent for the day thus far. Among the sectoral indices, most of them are in the green led by the Nifty Media, up by 1.6 per cent followed by Nifty Auto, up by about 0.7 per cent. On the other hand, the Nifty Bank index is down by 0.35 per cent and the Nifty Financial services has lost 0.25 per cent.
Futures: In line with the underlying Nifty 50 index, the September futures began the session on the front foot i.e., 17,379 versus Friday’s close of 17,329. It initially rallied to mark an intraday high of 17,429. However, the contract could not continue to push upwards and softened to the current level of 17,390. The major trend is bullish, and the buying seems to be broad-based considering how small and mid-cap indices have gained until now. The intraday trend can remain bullish as long as the contract stays above the support band of 17,330 and 17,350.
Considering the above factors, traders can go long on intraday dips while maintaining a stop-loss at 17,320. The contract is likely to regain momentum and go past 17,430 and touch 17,450 today. A breach of this level can lift the contract to an important level of 17,500. On the other hand, if the futures slip below 17,330 it can find support at 17,300 below which it can decline to 17,250.
Strategy: Buy on dips with stop-loss at 17,320
Supports: 17,350 and 17,330
Resistances: 17,430 and 17,450
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