Nifty call: Go long with stop-loss at 16,990

Equity markets across Asia has been positive since morning and taking cues from them the Indian benchmark indices began the session on the front foot. Both Nifty 50 and Sensex registered record highs today and are up by about 0.6 per cent each so far. The Nifty is at 17,035 whereas the Sensex is at around 57,230. Among the major Asian indices, the Nikkei 225 gained 1.1 per cent and the Hang Seng is up by 0.7 per cent.

The advance-decline ratio of the Nifty 50, at 41-9, indicates a bullish bias and the mid- and small-cap indices are up between 0.15 and 0.75 per cent. All the sectoral indices are in the green, indicating a strong bullish inclination at broader level of the market. The Nifty Metal index is the top gainer, up by 1.6 per cent followed by the Nifty PSU bank index, up by 1.2 per cent.

Futures

The September futures contract of the Nifty 50 opened the session slightly lower even though the underlying Nifty 50 index opened with a gain. However, it soon turned bullish and has been rallying since the beginning of the session. It moved above the critical level of 17,000 and so long as it remains above this level, the intraday trend can be bullish. So, traders can go long on intraday dips with stop-loss at 16,940.

From the current level of 17,025, the contract is likely to touch 17,100 today. Above this level, it might rise towards 17,150. But if the contract falls below 17,000, the rally may lose strength, possibly turning the intraday trend down. Support below 17,000 is at 16,940.

Strategy: Go long with stop-loss at 16,990

Supports: 17,000 and 16,940

Resistances: 17,100 and 17,150

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