Equity benchmarks have opened on a strong note. At the time of filing this report, BSE Sensex and Nifty 50 gained over one per cent each.
While the Sensex was trading at 59,869, up 1.22 per cent, Nifty 50 was at 17,854 with a 1.3 per cent gain.
The strong follow-through rise today, especially after a bounce from Monday’s low 17,429, is a positive. This keeps the chances high of the Nifty testing 18,000 ahead of Wednesday’s US Federal Reserve meeting outcome. Good intraday support for the Nifty will be at 17,770.
All major indices are trading in green. Nikkei 225 (27,679), Shanghai Composite (3,125.97), Hang Seng (18,805) and Kospi (2,368) are all up in the range of 0.3-1.25 per cent.
In the US, the Dow Jones Industrial Average (31,019.68, up 0.64 per cent) saw some recovery. However, the bigger picture is weak to see 30,000-29,500 on the downside.
The Nifty 50 September Futures (17,888) is up 1.48 per cent. The outlook is bullish. A rise to 18,000-18,100 can be seen in the coming sessions. However, the support is slightly steeper at 17,770. So, traders will have to have a wide stop-loss for the long positions that are taken at current levels
Traders can go long at current levels and accumulate on dips at 17,830. Keep the stop-loss at 17,740. Trail the stop-loss up to 17,910 as soon as the contract moves up to 17,970. Move the stop-loss further up to 18,010 when the contract touches 18,060. Book profits at 18,100.
Go long now and accumulate at 17,830. Keep the stop-loss at 17,740 for the target of 18,100. Trail the stop-loss up to 17,910 as soon as the contract moves up to 17,970. Move the stop-loss further up to 18,010 when the contract touches 18,060.
Supports: 17,770, 17,680
Resistances: 17,980, 18,100