Nifty Call: Buy in dips with a fixed stop-loss at 10,990 levels

Yoganand D | BL Research Bureau | Updated on August 14, 2019 Published on August 14, 2019

The NSE also offers Nifty High Alpha 50 and Nifty High Beta 50 indices for investors who wish to make risk-based investments PAUL NORONHA

Nifty 50 August Futures (11,039)

The key benchmark indices — the Sensex and the Nifty began the session in positive territory, taking cues from the bullish global markets. The Dow Jones had gained 1.4 per cent to 26,279 and S&P 500 gained 1.5 per cent to 2,926 in last session. Tracking this, the Nikkei 225 has surged almost 1 per cent to 20,655 levels and Hang Seng index as marginally advanced by 0.35 per cent to 25,368 levels in today's session.

Both the Sensex and the Nifty continued to trend upwards amid volatility and have gained almost 1 per cent. The market breadth of the Nifty index is biased towards advances. The India VIX has tumbled 5 per cent to 16.8 levels. The Nifty Pharma index has slumped 2.4 per cent witnessing selling pressure.

The Nifty August month contract started the session with a gap-up open at 10,999. After marking an intra-day low at 10,935 the contract continued to trend upwards breaching a key resistance at 11,000. It has registered an intra-day high at 11,070 levels.

The near-term outlook remains positive as long as the contract trades above 11,000. Traders can buy in dips with a stop-loss at 10,990. A strong rally above 11,060 can take the contract higher to 11,080 and 11,100 levels. Key supports below 11,000 are at 10,970 and 10,950 levels.

Strategy: Buy in dips with a fixed stop-loss at 10,990 levels

Supports: 11,000 and 10,970

Resistances: 11,060 and 11,080

Published on August 14, 2019
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