The Nifty call: Nifty 50 August Futures (17,450)

Akhil Nallamuthu |BL Research Bureau | Updated on: Aug 04, 2022

The advance/decline ratio stands at 34/16

The Asian equity markets are trading in the green and following this, the Indian benchmark indices opened the session with a gap-up. The Nifty 50 at 17,420 and the Sensex at 58,450 are up by 0.2 per cent each. Among the major Asian indices, Nikkei 225, ASX 200, Hang Seng and KOSPI are up in the range of 0.1 – 1.3 per cent.

The market breadth of the Nifty 50 is showing a bullish bias as the advance/decline ratio stands at 34/16. All the mid- and small-cap indices too are in the green.

Among the sectoral indices, the Nifty Metal is the top gainer, up by 1.8 per cent whereas the Nifty Realty is the top loser, down by 1.2 per cent.

Futures: Like the underlying Nifty 50, the August futures of the index opened today’s session marginally higher at 17,456 versus yesterday’s close of 17,407. It initially rallied to hit a fresh high of 17,505 but then it moderated to the current level of 17,450. As long as the contract lies above 17,400, bulls are expected to be in control and the likelihood of a rally from here is high.

While 17,500 can be a hurdle, the Nifty futures is expected to move past this level and touch 17,600, a resistance. Subsequent resistance is at 17,700.

Traders can execute intraday longs at the current level of 17,450 and add more longs if price dips to 17,400. Place initial stop-loss at 17,300. When the contract moves past 17,525, tighten the stop-loss to 17,425. Liquidate the longs at 17,600.

Strategy: Execute intraday longs at the current level of 17,450 and add more longs if price dips to 17,400. Place initial stop-loss at 17,300. When the contract moves past 17,525, tighten the stop-loss to 17,425. Liquidate the longs at 17,600.

Supports: 17,400 and 17,300

Resistances: 17,500 and 17,600

Published on August 04, 2022
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