Technical Analysis

Nifty Call: Buy on dips with a fixed stop-loss

Yoganand D BL Research Bureau | Updated on August 09, 2019 Published on August 09, 2019

Nifty 50 August Futures (11,177)

Taking positive cues from the global markets, the Sensex and the Nifty began the session with a gap-up open and continued to trend upwards.

The Dow Jones gained 1.4 per cent to 26,378 and S&P 500 index jumped 1.8 per cent to 2,938 last session. The Asian markets are trading mixed; the Nikkei 225 is up 0.4 per cent to 20,684 while the Hang Seng index is marginally down by 0.3 per cent to 26,042 levels.

Both the Sensex and the Nifty have gained over 1 per cent in today's session. The market breadth of the Nifty index is biased towards advances. The India VIX has declined 0.7 per cent to 15.9 levels. Buying interest is also seen in the Nifty mid and small-cap indices that have gained 1.5 per cent and 1.4 per cent respectively.

The Nifty August month contract started the session with a gap-up open at 11,108. After an initial decline to the intra-day low of 11,068, the contract resumed its up-move. The contract decisively breached key resistances at 11,100 and 11,150 levels.

Near-term outlook is bullish. The contract can extend the up-move and test resistance at 11,200 levels. A strong rally above this level can take the contract northwards to 11,225 and 11,250 levels. Key supports below 11,100 are at 11,070 and 11,050. Immediate supports are at 11,150 and 11,120 levels.

Strategy: Near-term outlook is bullish, buy on dips with a fixed stop-loss

Supports: 11,150 and 11,120

Resistances: 11,200 and 11,225

Published on August 09, 2019

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