Nifty Call: Buy with a stop-loss at 11,070 levels

Yoganand D BL Research Bureau | Updated on August 27, 2019

Nifty 50 August Futures (11,002)

The Sensex and the Nifty began the session on a positive note. After an initial decline, the benchmark indices started to trend up, extending yesterday’s bullish momentum. Both the indices have gained over 0.6 per cent.

Asian market are a mixed bag, the Nikkei 225 has advanced 0.96 per cent to 20,456 while Hang Seng index has slipped marginally by 0.24 per cent to 25,619.

The market breadth of the Nifty index is biased towards advances. On the other hand, the India VIX has slumped 3 per cent 16.12 levels. The Nifty mid and small-cap indices have also gained 1 per cent and 1.8 per cent respectively in today's session. Buying interest is seen in Nifty Auto and Nifty PSU Bank indices which have gained over 2 per cent each.

The Nifty August month contract began the session with a gap-up opening at 11,090. After marking an intra-day low at 11,034 the contract resumed the up-move and decisively breached a key barrier at 11,100. It has recorded an intra-day high at 11,130. Key resistances above 11,150 are at 11,175 and 11,200. Supports are placed at 11,075 and 11,050.

Traders can buy in declines with a stop-loss at 11,070. On the downside, a strong fall below 11,050 can bring back selling pressure and drag the contract down to 11,025 and 11,000 levels.

Strategy: Buy in dips with a stop-loss at 11,070 levels

Supports: 11,075 and 11,050

Resistances: 11,130 and 11,150

Published on August 27, 2019

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