Nifty call: Go long with stop loss at 17,170

Akhil Nallamuthu |BL Research Bureau | Updated on: Aug 01, 2022

Supports are at 17,250 and 17,200; resistances 17,400 and 17,500

Nifty 50 August Futures (17,300)

The Indian benchmark indices opened firmly after closing in green in the past two weeks. They look to extend the rally from here. Currently, the Nifty 50 at 17,270 and the Sensex at 57,930 are up by about 0.7 per cent each.

The market breadth of the Nifty 50 index is showing positive bias as the advance/decline ratio stands at 38/12. All the mid- and small-cap indices are in the green. Most of the sectoral indices, too, have gained led by the Nifty Auto, up by 2.8 per cent. The Nifty Realty is the top loser, down by 0.1 per cent.

The chart of the Nifty 50 looks positive and the likelihood of a rally from here is high.

Futures: Like the underlying Nifty 50, the August futures of the index opened today’s session higher at 17,262 versus the last week’s close of 17,202. The contract has been rallying since opening and it is currently trading at around 17,310.

The price action looks bullish, and the Nifty futures is expected to touch 17,500 soon. However, there might be a minor correction at 17,500. Considering the above factors, here’s our trade recommendation.

Go long at the current level of 17,300 and accumulate more longs when price dips to 17,250 with stop-loss at 17,170. When the contract crosses over 17,400, revise the stop-loss up to 17,275. Exit all the longs at 17,500 as there might be resistance at this level.

Further trades can be decided based on how the contract reacts to 17,500.

Strategy: Go long at the current level of 17,300. Accumulate more longs when price dips to 17,250 and place stop-loss at 17,170. When the contract crosses over 17,400, revise the stop-loss up to 17,275. Exit all the longs at 17,500

Supports: 17,250 and 17,200

Resistances: 17,400 and 17,500

Published on August 01, 2022
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