Nifty 50 August futures (17,491)
The Indian markets opened the week on a positive note. Both the Sensex and Nifty 50 are trading higher. Sensex is at 58,647, up 0.44 per cent. Nifty 50 is trading at 17,454, up 0.33 per cent.
Resistance is seen at 17,500. The inability to break above that level can drag the contract down to 17,500-17,350 again. That, in turn, could keep the index in the range of 17,200-17,500 for some more time. However, the bias is positive. Chances for the Nifty to breach the 17,500 level are high. Such a break will take it up to 17,600 initially and then to 17,800-17,900 eventually this week.
In Asia, barring the Hang Seng (20,046.7, down 0.8 per cent), the other major indices are trading in the green. The Nikkei 225 (28,254), Shanghai Composite (3,232) and Kospi (2,492) are all up marginally in the range of 0.05 to 0.3 per cent.
The Nifty 50 August futures (17,491) contract is up 0.4 per cent. Resistance is seen in the 17,500-17,515 region. A strong break above that level can take the contract up to 17,630-17,650 in the next few sessions.
But, a pull-back from the 17,500-17,515 region, can drag the contract down to 17,350 again.
The bias for a break above 17,515 and rise to 17,630-17,650 are, however, positive. So, traders can wait and go long on a break above 17,515. Keep the stop-loss at 17,460. Trail the stop-loss up to 17,540 as soon as the contract moves up to 17,580. Move the stop-loss further up to 17,575 as soon as the contract touches 17,610 on the upside. Book profits at 17,630.
Go long on a break above 17,515. Keep the stop-loss at 17,460 for the target of 17,630. Trail the stop-loss up to 17,540 as soon as the contract moves up to 17,580. Move the stop-loss further up to 17,575 as soon as the contract touches 17,610 on the upside.
Supports: 17,400, 17,350
Resistances: 17,515, 17,650