Stocks

Nifty Call: Buy on dips with stop-loss at 15,990 levels

Yoganand D | Updated on August 03, 2021

Key supports are placed at 15,950 and 15,900 levels

Nifty 50 July Futures (15,672)

The Sensex and the Nifty 50 began the session with a gap-up open and continued to trend upwards despite weak Asian markets. The Nikkei 225 has fallen 0.5 per cent to 27,641 and Hang Seng index has declined 0.35 per cent to 26,144 levels. Both the Nifty 50 and Sensex have extended the rally and have surged almost 1 per cent each. The market breath of the Nifty 50 is biased towards advances. The India VIX has jumped 5 per cent to 13.4 levels indicating increase in volatility. Both the Nifty mid and small-cap indices are marginally hovering in the negative territory. Apart from the Nifty media and metal indices which are down by 1.28 per cent and 0.07 per cent respectively, other sectoral indices are featuring in the positive territory. Top gainers are Nifty Pharma and FMCG that have gained 1 per cent each.

The Nifty futures August month contract began the session with a gap-up open at 15,947 against the previous close at 15,909 levels. After marking an intraday low at 15,912 the contract continued to trend upwards and has breached the key resistance at 16,000. The near-term outlook stays positive as long as the contract trades above 16,000 levels. Traders can buy the contact on dips with a fixed stop-loss at 15,990. A strong rally above 16,050 can take the contract higher to 16,100 and then 16,120 levels. Key supports below 16,000 are placed at 15,950 and 15,900 levels.

Strategy: Buy on dips with a fixed stop-loss at 15,990 levels

Supports: 16,000 and 15,950

Resistances: 16,050 and 16,100

Published on August 03, 2021

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