Nifty call: Go long above 17,360 with stop-loss at 17,325

BL Research Bureau

Nifty 50 September Futures (17,345)

Following the negative US close yesterday, the Asian markets have been bearish since morning. The Nikkei 225 is down by nearly 0.6 per cent and the Hang Seng has lost a little over 2 per cent. In line with this, the domestic benchmark indices – the Nifty 50 and the Sensex – opened the day lower. However, it recovered and is now flat for the day.

The market breadth too does not seem to show any bias as the advance-decline ratio currently stands at 25-25. But the mid- and small-cap indices seem to perform better as they have gained between 0.1 and 0.5 per cent. Among the sectoral indices, the Nifty FMCG and the Nifty Media index are the top performers, up by 0.8 and 0.7 per cent, respectively. On the other hand, the Nifty Realty is down by 0.6 per cent followed by the Nifty Financial Services index lost 0.3 per cent.

Futures: The September futures of the Nifty 50 index began the session lower at 17,330 versus yesterday’s closing price of 17,370. It initially declined to mark a low of 17,309 and have now recovered to 17,345. The contract is facing a strong hurdle at 17,360 and unless it decisively breaches this level, the extension of the upward movement will be less likely. But the major trend of the contract remains bullish.

Hence, trades can go long in the contract with stop-loss at 17,325 if the breaches the resistance at 17,360. A breach of this level can lift the contract to 17,400 and possibly to 17,430. But if the resistance holds and the price drops on the back of this, the nearest support is the price band of 17,300 and 17,325. Below 17,300, the support is at 17,260.

Strategy: Go long above 17,360; stop-loss at 17,325

Supports: 17,325 and 17,300

Resistances: 17,360 and 17,400

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