Stocks

Nifty call: Sell on rallies with fixed stop-loss at 11,055 levels

Yoganand D | Updated on August 28, 2019

Nifty 50 August Futures (11,030)

The Sensex and the Nifty began the session in negative territory and extended the down-move on the back of weak global cues. The Asian markets are showing mixed signs. The domestic benchmark indices extend the decline and have slumped about 0.55 per cent. The market breadth of the Nifty index is biased towards declines. On the other hand, the India VIX - volatility index has gained 3.5 per cent to 16.5 levels. The Nifty metal index has slumped 2.7 per cent and is the biggest loser followed by Nifty auto index which has declined 1.2 per cent. Buying interest is seen in the Nifty IT index and realty which has gained 0.6 per cent and 2 per cent respectively.

The Nifty August month contract started the session on flat note at 11,102. After marking an intra-day high at 11,132 the contract began to decline and has recorded an intra-daay low at 11,024. A fall below the immediate support level of 11,025 can drag the contract lower to 11,000. A further decline below 11,000 can test supports at 10,975 and 10,950 levels. Key resistances above 11,050 are at 11,075 and 11,100 levels. Traders can sell on rallies with a fixed stop-loss at 11,055 levels.

Strategy: Sell on rallies with a fixed stop-loss at 11,055 levels.

Supports: 11,000 and 10,975

Resistances: 11,050 and 11,075

Published on August 28, 2019

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