Nifty 50 October futures (17,388)

The Sensex and Nifty 50 are trading higher. Both the indices are trading over 0.7 per cent each. The Sensex is up 0.71 per cent and is trading at 58,478. Nifty is at 17,399 and is up 0.72 per cent.

Nifty faces resistance at 17,500-17,550. It can rise to test this resistance zone in the next few sessions. Thereafter, it remains to be seen if it reverses lower or not. Support for the Nifty is at 17,300.

Global indices

In Asia, the major indices are trading mixed. Nikkei 225 (27,372) and Kospi (2,248) are up 0.93 and 1.48 per cent. On the other hand, the Shanghai Composite (3,024) is down 0.55 per cent and the Hang Seng (18,099) is flat.

In the US, the Dow Jones Industrial Average (30,273.87) has dipped slightly after having risen on Monday and Tuesday. The Dow has room to test its resistance at 30,800-31,000. The chances are high for the Dow to reverse lower from there and resume its overall downtrend.

Nifty 50 futures

The Nifty 50 October futures (17,388) is up 0.55 per cent. Intraday support for the Nifty futures contract is at 17,350. A break below that level can drag the contract down to 17,300 and even lower to 17,250-17,220.

Resistance for the contract is at 17,425. A strong break above it will be needed to gain bullish momentum and rise to 17,550 in the near-term.

Traders will have to wait for a break above 17,425 to take fresh long positions. Stop-loss can be kept at 17,380. Trail the stop-loss up to 17,455 as soon as the contract moves up to 17,485. Move the stop-loss further up to 17,480 when the contract touches 17,510. Book profits at 17,530.

Trading Strategy: Go long on a break above 17,425. Keep the stop-loss at 17,380 for the target of 17,530. Trail the stop-loss up to 17,455 as soon as the contract moves up to 17,485. Move the stop-loss further up to 17,480 when the contract touches 17,510.

Supports: 17,350, 17,300

Resistances: 17,425, 17,500

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