Nifty 50 August Futures (17,962)

The benchmark indicies Sensex and Nifty 50 are trading flat with the Sensex at 60,320 and Nifty 17,958. The indices seem to lack a strong follow-through rise over the last few days awaiting a fresh trigger to move up further. Else, a near-term correction is possible before a fresh rally is seen.

Being the final trading day of the week, the psychological level of 18,000 is holding well for the Nifty. In the absence of any fresh trigger, Nifty might continue to trade below 18,000 and remain rangebound between 17,800-18,000 with chances of moving dowards to 17,850 during the day.

A decisive break above 18,000 is needed to gain fresh momentum and rise to 18,100 and 18,400.

Global indices

In Asia, barring the Hang Seng (19,853, up 0.45 per cent), the other major indices are trading marginally lower. Nikkei 225 (28,933), Shanghai Composite (3,277) and Kospi (2,501) are down in the range of 0.01-0.3 per cent.

In the US, the Dow Jones Industrial Average (33,999) remained broadly stable yesterday and has closed flat. It will need a sustained rise past 34,000 to rise further. Else a fall is possible in the coming days.

Nifty Futures

The Nifty 50 August Futures (17,962) is coming down after testing 18,000. The intraday charts suggest that a fall to 17,860-17,830 can be seen during the day with 17,800 being an important support. A break below it can trigger a further fall towards 17,600, going forward. For now, the contract is likely to remain in the 17,800-18,000 level and fall within it.

Traders with a high-risk appetite can go short with stop-loss at 18,020. Trail the stop-loss down to 17,930 as soon the contract falls to 17,890 and m it further down to 17,885 when touching 17,865. Book profits at 17,830.

The contract will regain momentum on a strong break above 18,000. Such a break can take it up to 18,100.

Trading Strategy: Go short now with a stop-loss at 18,020. Stop-loss can be placed at 18,020 for the target of 17,820. Trail the stop-loss down to 17,930 as soon the contract falls to 17,890. Move the stop-loss further down to 17,885 as soon as the contract touches 17,865.

Supports: 17,860, 17,800

Resistance: 18,000, 18,100

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