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

Yoganand D BL Research Bureau | Updated on August 04, 2021

Key resistances are placed at 16,275 and 16,295 levels

Nifty 50 August Futures (16,239)

The Sensex and the Nifty 50 began the session with a gap-up open and continued to trend upwards amid mixed Asian markets. The Nikkei 225 has fallen 0.2 per cent to 27,584 while the Hang Seng index has advanced 0.7 per cent to 26,377 levels in today’s session. The Sensex and the Nifty 50 have climbed 0.8 per cent and 0.6 per cent respectively. The market breadth of the Nifty 50 is biased towards declines. The India VIX has fallen 3 per cent to 13.3 levels, indicating decrease in volatility.

Both the mid and small-cap indices have declined 1.2 per cent and 0.88 per cent correspondingly. Apart from the Nifty Bank, which is supported by strong rally in Nifty PVT Banks and has climbed 1.9 per cent and the Nifty Financial Service indices up by 2.3 per cent, other sectoral indices are hovering in the negative terrain. Top sectoral losers are Nifty Realty and PSU Bank indices that have declined 1.8 per cent and 1.06 per cent correspondingly.

The August month contract commenced the session with a gap-up open at 16,200 against the previous close at 16,146. It marked an intraday low at 16,188 and intraday high at 16,294 levels. The near-term view stays positive as long as the stock trades above 16,190 levels. A fall below this level can pull the contract down to 16,150 and then to 16,120 on the back of profit booking. Key resistances above 16,250 are placed at 16,275 and 16,295 levels.

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

Supports: 16,190 and 16,150

Resistances: 16,250 and 16,275

Published on August 04, 2021

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