The Indian benchmark indices began today’s session with a gap-down. However, post opening, both indices recovered — the Nifty 50 at 17,610 and the Sensex at 59,130 are now up by nearly 0.2 per cent each. The Asian markets look mixed — that is, among the major indices, ASX 200 and KOSPI are up by 0.5 per cent each whereas Nikkei 225 and Hang Seng are down by 0.4 and 1.1 per cent, respectively.

The market breadth of the Nifty 50 is showing a bullish bias as the advance-decline ratio is at 29/21. Like the benchmarks, the Midcap 50 and Smallcap 50 are up by 0.3 and 1.2 per cent, respectively. So, despite a weak beginning, the market seems to be gaining positive momentum.

Futures: The August futures of the Nifty 50 index opened today’s session lower at 17,552 versus yesterday’s close of 17,585. However, the contract recouped the loss and is currently trading at 17,600.

But note that there is a resistance at 17,675, and that means the rally might be capped. On the other hand, 17,500 is a good support. The price action in the hourly chart hints that the contract could be heading to a short-term consolidation phase where it will likely oscillate between 17,500 and 17,675.

Therefore, until the contract breaches either 17,500 or 17,675, traders can stay away.

A breakout of 17,675 can lift the contract to 17,800 and then possibly to 17,900. But a breach of the support at 17,500 can drag Nifty futures to 17,250.

Strategy: Stay away until Nifty futures move out of the 17,500-17,675 range.

Supports: 17,500 and 17,250

Resistances: 17,675 and 17,800