The Indian benchmark indices began today’s session with a gap-up following positive cues from the Asian markets. The Nifty 50 at 17,900 and the Sensex at 60,115 are up by nearly 0.5 per cent so far today. Among the Asian major indices, Nikkei 225, ASX 200, and Hang Seng are up in the range of 0.2-1 per cent.
The market breadth of the Nifty 50 is showing a bullish inclination as the advance/decline ratio is at 35/15. All the mid- and small-cap indices are in the green. Also, all the sectoral indices have gained led by the Nifty Media and IT, up by 1.9 and 1 per cent, respectively. Therefore, the overall bias is bullish and keeps the chances of the index making to make further intraday gains high.
Futures: The August futures of the Nifty 50 index opened today’s session higher at 17,898 versus yesterday’s close of 17,850. It is currently trading at 17,930 and it will most likely hit 18,000 today. But since this is a resistance level, there might be some moderation after the Nifty futures touch 18,000.
But a breakout of this can lead to another leg of rally towards 18,100. On the other hand, if the contract drops after reaching 18,000, it can find support at 17,800 and 17,750. Considering the above factors, one can go long at the current level of 17,920 with a stop-loss at 17,880. Exit at 18,000. Fresh trades thereafter can be decided based on how the contract reacts to 18,000.
Strategy: Go long at the current level of 17,920 with stop-loss at 17,880. Exit at 18,000.
Supports: 17,900 and 17,800.
Resistances: 18,000 and 18,100.