The rally in the Indian equities continues. Nifty 50 has risen above the psychological level of 17,000. At the time of publishing this report, the 50-shaer index was at 17,065 or up 0.8 per cent against the previous close.
The benchmark index has good support in the 16,980-16,960 region. Dips to this support zone is likely to get fresh buyers coming in to the market. As long as the Nifty stays above this support zone, the outlook is bullish to see 17,300-17,350 in the coming sessions.
The major Asian indices are trading mixed. Kospi (2,445) is up 0.4 per cent. But Nikkei 225 (27,734), Shanghai Composite (3,258) and Hang Seng (20,148) are down in the range of 0.3-2.3 per cent.
In the US, the Dow Jones Industrial Average (32,529.63) had surged over one per cent yesterday. It has closed above the crucial resistance level of 32,400. If it manages to sustain above 32,400, a further rise to 32,800-33,000 is possible.
The Nifty 50 August Futures contract (17,070) is up 0.67 per cent. The contract has risen well above the crucial resistance level of 16,930. It has support at 16,970. As long as the contract trades above this support, the outlook is bullish to see 17,300-17,400 in the coming days.
Traders can wait for dips and go long at 17,010. Accumulate longs at 16,980. Keep the stop-loss at 16,910. Trail the stop-loss up to 17,040 as soon as the contract moves up to 17,090. Move the stop-loss further up to 17,120 as soon as the contract touches 17,160. Book profits at 17,180
A strong break below 16,960 is needed to negate the bullish view and bring the contract under pressure. In that case a fall to 16,900-16,800 is possible.
Go long on dips at 17,010 and accumulate at 16,980. Keep the stop-loss at 16,910 for the target of 17,180. Trail the stop-loss up to 17,040 as soon as the contract moves up to 17,090. Move the stop-loss further up to 17,120 as soon as the contract touches 17,160.
Supports: 16,960, 16,900
Resistances: 17,200, 17,350