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BL Research Bureau
Nifty 50 September Futures (17,345)
The Asian equity market looks mixed – the early riser ASX 200 lost 0.1 per cent, the Nikkei 225 and the Hang Seng are up by about 0.8 per cent each and the KOSPI is down by 0.6 per cent. Nevertheless, the domestic benchmarks i.e., the Nifty 50 and the Sensex opened with a gap-up. However, they could not extend the rally and started to moderate. Currently, both the indices are down by nearly 0.3 per cent each so far.
The market breadth of the Nifty 50 index is showing a bearish bias as the advance-decline ratio stands at 18-32. Like the benchmark indices, the mid- and small-cap indices have lost between 0.2 and 0.3 per cent and most of the sectoral indices are in the red. The Nifty Consumer durables is the top gainer, up by nearly 1 per cent followed by the Nifty FMCG index, up by a little over 0.8 per cent. On the other hand, the Nifty Realty index is the top loser, down by 1.8 per cent followed by the Nifty PSU index, down by 1.2 per cent.
Futures: Although the underlying Nifty index opened with a gap-up, the futures opened lower at 17,372 against Monday’s close of 17,404. While it rallied to mark an intraday high of 17,420, the contract overturned the direction and is now hovering at 17,345. The overall trend is up, and the contract has a considerable support at 17,320 and so long as it remains above this level, the intraday trend will be biased towards upward direction. Yet, from the current level, the contract faces a hurdle at 17,360.
So, traders can wait for now and initiate fresh long positions once the futures cross over 17,360; maintain stop-loss at 17,315. A breakthrough of 17,360 can result in the contract reaching 17,430. A decisive breach of this level can take the contract to 17,500. But in case the contract falls below 17,320, it can extend the decline to 17,250 and then possibly to 17,225.
Strategy: Go long if the contract rallies above 17,360; stop-loss at 17,315
Supports: 17,320 and 17,250
Resistances: 17,360 and 17,430
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