Technical Analysis

Nifty call: Buy on dips while maintaining stop-loss at 11,025 levels

Yoganand D | Updated on August 16, 2019 Published on August 16, 2019

Nifty 50 August futures (11,054)

The Sensex and Nifty began the session with a gap-down opening. After an initial decline, the key benchmark indices trimmed their losses and are now trading flat. The Nifty mid- and small-cap indices are also trading flat. The India VIX has gained 1.9 per cent to 16.6 levels. Buying interest is seen in the Nifty bank and auto sector indices, which have gained 0.46 per cent and 0.4 per cent, respectively. However, selling pressure is evident in the Nifty IT, metal and pharma sectors, which have declined about 0.7 to 1 per cent.

The Nifty August month contract commenced the session with a gap-down opening at 10,960. Following an intra-day low at 10,926, the contract began to recover and currently trades in the green. The contract has marked an intra-day high at 11,072 levels.

The near-term outlook will remain positive as long as the contract trades above 11,025 levels. Traders can buy on declines, with a stop-loss at 11,025 levels. A strong rally above 11,070 can test resistance at 11,100 levels. The next key resistances are at 11,125 and 11,150. Key supports below 11,025 are at 11,000 and 10,970.

Strategy: Buy on dips while maintaining a stop-loss at 11,025 levels

Supports: 11,025 and 11,000

Resistances: 11,070 and 11,100

Published on August 16, 2019
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