Stocks

Nifty Call: Go long on strong rally above 15,700 levels

Yoganand D | Updated on July 20, 2021

Resistances are placed at 15,780 and 15,800 levels

Nifty 50 July Futures (15,675) Tracking the weak Asian markets, the Nifty 50 and the Sensex began the session with a gap-down open and witnessed selling pressure in the first half of the trading session. The Nikkei 225 has fallen 0.96 per cent to 27,388 and Hang Seng index has slipped 0.6 per cent to 27,320 levels in today's session. However, from the intraday low the Sensex and the Nifty 50 are on a recovery mode and have trimmed the intraday loss to 0.5 per cent and 0.6 per cent respectively. The market breadth of the Nifty 50 is biased towards declines. On the other hand, the India VIX has gained 4.3 per cent to 13.2. Both the Nifty mid and small-cap indices have declined 1.2 per cent each. Apart from the Nifty IT and FMCG sectoral indices that are marginally hovering in the positive territory, all the other sectoral indices are featuring in the negative territory. The top losers are Nifty media and metal indices which have slumped almost 2 per cent each.

The Nifty July month contract commenced the session with a gap-down open at 15,711. After marking an intraday low at 15,586 the contract started to recover and has moved above the resistance level of 15,600. The contract now faces next resistance at 15,700. A strong rally above this level can take the contract higher to 15,730 and then to 15,750 levels. Next resistances are at 15,780 and 15,800 levels. Key supports below 15,600 are at 15,585 and 15,550 levels.

Strategy: Go long on a strong rally above 15,700 levels with a fixed stop-loss

Supports: 15,650 and 15,600

Resistances: 15,700 and 15,730

BL Research Bureau

Published on July 20, 2021

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