Technical Analysis

Nifty Call: Buy in dips with stop loss at 11,090

Yoganand D BL Research Bureau | Updated on August 19, 2019 Published on August 19, 2019

Nifty 50 August Futures (11,135)

The Sensex and the Nifty began the session with a gap-up open taking positive cues from the Asian markets. The Nikkei 225 index has gained 0.7 per cent and Hang Seng index has jumped 2.2 per cent to 26,311 in today's session. 

Extending the up-move the Sensex has gained 0.8 per cent and the Nifty has advanced 0.77 per cent. The market breadth of the Nifty is biased towards advances. On the hand, the India VIX has slumped 2.3 per cent to 16.2 levels. The Nifty mid-cap and small-cap indices have climbed 0.6 per cent and 0.56 per cent respectively.

The Nifty August month contract started the session with a gap-up open at 11,082. Following an initial decline to the intra-day low of 11,065 the contract bounced back breaching a key resistance at 11,100 levels. The near-term view will remain positive above 11,100 levels. A strong rally above 11,150 can take the contract higher to 11,175 and then to 11,200 levels in the near term.

Traders can buy in dips with a stop-loss at 11,090. But a decline below 11,100 can witness a corrective fall to 11,080 and then to 11,065 levels. Subsequent key supports are at 11,050 and 11,025 levels.

Strategy: Can buy in dips with a stop-loss at 11,090 levels

Supports: 11,100 and 11,080

Resistances: 11,150 and 11,175

Published on August 19, 2019
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