Nifty call: Go long at current levels with stop-loss at 11,440
Nifty 50 September futures (11,465)
The Nifty 50 futures contract continues to trade on a negative note. However, the price action suggests that the contract lacks strong selling pressure below 11,500. The index futures made a low of 11,443 and are trying to bounce back. Support for the contract is at 11,435. The contract will come under renewed pressure only if it breaks below this support level of 11,435. Such a break can drag it to 11,400 and 11,370 in the coming sessions.
But if the index futures manage to sustain above 11,435, an up-move to 11,500 is possible. Further break above 11,500 will ease the downside pressure and will pave the way for subsequent targets of 11,525 and 11,555.
Short-term traders with a high risk appetite can go long at current levels. Stop-loss can be placed at 11,440 for the target of 11,515. Revise the stop-loss higher to 11,475 as soon as the contract moves up to 11,490.
Strategy: Go long at current levels with a stop-loss at 11,440
Supports: 11,435, 11,400
Resistances: 11,500, 11,525