Stocks

Nifty Call: Buy on declines with stop-loss at 16,190 levels

Yoganand D | Updated on August 05, 2021

Key supports are placed at 16,250 and 16,220 levels.

Nifty 50 August Futures (16,331)

In the midst of mixed Asian markets, the Sensex and the Nifty 50 began the session on a flat note and witnessed minor selling interest in the initial hours of the trade. But subsequently started to rally and the Sensex has climbed 0.46 per cent and the Nifty 50 has advanced 0.44 per cent so far. However, the market breadth of the Nifty 50 is slightly biased today’s declines. The India VIX is hovering flat at 13.2 levels. Both the Nifty mid and small-cap indices have fallen 0.45 and 0.68 per cent, respectively. Among the sectoral indices, the Nifty IT and Pharma are featuring in the positive territory, gaining 0.9 and 0.2 per cent, respectively. Selling pressure is seen in the Nifty PSU Bank and Realty sector which has declined 2.4 per cent and 1.4 per cent correspondingly.

The August month Nifty futures contract started the session on a positive note at 16,280 and slipped to mark an intraday low at 16,220 levels. Nevertheless, the contract has recovered from the intraday low and has surpassed the resistance at 16,300. Make use of dips to buy the contract with a stop-loss at 16,275 levels. A rally above the immediate resistance at 16,345 can take the contract higher to 16,375 and then to 16,400 levels in the near term. Key supports below 16,280 are placed at 16,250 and 16,220 levels.

Strategy: Buy on declines with stop-loss at 16,190 levels

Supports: 16,280 and 16,250

Resistances: 16,345 and 16,375

BL Research Bureau

Published on August 05, 2021

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