Nifty call: Go long with stop loss at 17,500

The domestic equity markets are in green today. The Asian markets, too, following the positive close of the US market yesterday, have gained. Major Asian indices ASX 200, Hang Seng and KOSPI have appreciated by 1, 2.2 and 1.4 per cent, respectively.

Taking positive cues from the Asian market, the domestic benchmark indices began the day with a gap-up. The Nifty 50 at 17,670 and the Sensex at 59,340 are up 0.7 per cent and 0.9 per cent, respectively.

The market breadth of the Nifty 50 is indicating a bullish bias as the advance/decline ratio stands at 37/13.

Similarly, all the mid- and small-cap indices are up in the range of 0.7–1.2 per cent. On the back of broader bullish inclination, all the sectoral indices (except the Nifty FMCG, down by 0.4 per cent), are up. The Nifty PSU bank is the top gainer, up by 2.4 per cent.

Futures

Like the underlying Nifty 50, the August futures of the index opened today’s session higher at 17,711 against yesterday’s close of 17,558. It, however, has moderated to 17,680.

The contract, probably, decline to 17,620, but will eventually start moving up, indicating the bullishness. On the upside, the contract can rally to 17,800, and then possibly to 18,000 in the next few sessions.

Against this backdrop, one can go long at the current level of 17,700 and add more longs when the contract dips to 17,620. Place stop-loss at 17,550. Exit the longs at 17,800.

Strategy

Go long at the current level of 17,700 and add more longs when the contract dips to 17,620. Place stop-loss at 17,550. Exit the longs at 17,800.

Supports: 17,600 and 17,500

Resistances: 17,800 and 18,000

COMMENT NOW