Technical Analysis

Nifty 50 July Futures (10,789)

| Updated on July 08, 2020

Tracking the mixed Asian markets, the Sensex and the Nifty 50 began the session on a flat note and witnessed an initial rally. But, the benchmak indices started to decline thereafter and was on a minor correction. Currently, both the indices are hovering flat. The Nikkei has fallen 0.78 per cent to 22,438 whereas the Hang Seng index has climbed marginally by 0.23 per cent to 26,036 levels in today's session. The market breadth of the Nifty 50 index is slightly biased towards advances. The India VIX has gained 2.4 per cent to 25.7 levels. Interestingly, the Nifty mid and small-cap indices have advanced 0.8 per cent and 1.1 per cent respectively on the back of buying interest.

The Nifty 50 July month contract commenced the session with a gap-up open at 10,799. After marking an intra-day high at 10,817 the contract began to decline and slipped below 10,750. But the contract took support, registering an intra-day low at 10,736 and resumed the up-move. The near-term stance remains positive as long as the contract trades above 10,750 levels. Traders can make use of intra-day dips to buy the contract while maintaining a stop-loss at 10,740 levels. A conclusive break above 10,800 can take the contract northwards to 10,820 and then to 10,850 levels. On the other hand, a decisive fall below 10,750 can witness a corrective decline to 10,730 and then to 10,700 levels. A strong plunge below 10,700 can bring back selling interest. Next key supports are at 10,670 and 10,650 levels.

Strategy: Buy on declines with a fixed stop-loss at 10,740

Supports: 10,750 and 10,730

Resistances: 10,800 and 10,820

Yoganand D

BL Research Bureau

Published on July 08, 2020

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