Trade setup for Aug 8: Major resistance awaits Nifty50 at 17,500

On Monday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — fell as much as 82 points or 0.5 percent to 17,341.5, suggesting a lower start ahead on Dalal Street.

Equities in other Asian markets began the week on a largely negative note, following a mixed session on Wall Street. MSCI's broadest index of Asia Pacific shares outside Japan was down 0.6 percent in early hours.

Japan's Nikkei 225 was down 0.6 percent and Hong Kong's Hang Seng one percent, and China's Shanghai Composite was flat.

S&P 500 futures edged 0.1 percent lower. On Friday, Wall Street indices were a mixed bag, as weakness in Tesla and other tech-related stocks countered optimism that the Fed might let up its aggressive campaign to tackle high inflation.

HDFC Securities' Shetti believes the Nifty50 is likely to remain choppy with high levels of volatility in the short term.

"As long as it stays below the hurdle of 17,500, there is a possibility of muted movement... A sustainable move above this level could open the next upside targets of 17,800-17,900 in the near term, with immediate support at 17,200," he said.

The maximum call open interest is accumulated at the strike price of 18,000, with 1.3 lakh contracts, and the next highest at 17,500, with 1.2 lakh, according to exchange data. On the other hand, the maximum put open interest is at 17,000, with 80,000 contracts, and 17,300, with nearly 58,000 contracts.

This suggests immediate resistance at 17,500 and immediate support at 17,300.