Technical Analysis

Nifty call: Buy on dips with stop loss at 10,890

Akhil Nallamuthu | Updated on September 06, 2019 Published on September 06, 2019

Nifty 50 September futures (10,940)

The Nifty 50 opened Friday’s session with a marginal gain and is currently trading 0.5 per cent higher over yesterday's close. The index is trading above an important resistance, the 10,900 level. With positive cues from other Asian markets, the Indian equity market also looks to be positively biased. The Sensex is also trading higher, with 0.6 per cent gains over yesterday's close.

The market breadth clearly favours bulls, as 38 of the 50 stocks in the Nifty 50 index are in the green. India-VIX is down to 16.6 levels, which is 3.7 per cent lower compared to its previous close. All the sectoral indices have gained in today’s session, with the exception of the Nifty Realty and Nifty Pharma index. The Nifty private bank index is the top gainer and is up by 1.2 per cent, whereas the Nifty Realty index is the top loser, falling 1.4 per cent in today’s session.

The Nifty September month contract opened the session around 10,900 levels with a gap up, against the previous day’s close of 10,881. Since then, the contract has moved up and made an intra-day high of 10,957. With bulls appearing to gain traction, the contract can move up to 11,000 levels. Traders can buy on dips, with stop loss at 10,890.

Strategy: Buy on dips with stop loss at 10,890.

Supports: 10,900 and 10,860

Resistances: 11,000 and 11,040

Published on September 06, 2019
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