Technical Analysis

Nifty call: Buy on intra-day dips, with stop-loss at 10,900 levels

| Updated on August 06, 2019 Published on August 06, 2019

Nifty 50 August futures (10,954)

After an almost flat opening, the Sensex and Nifty entered positive territory and continued to trend upwards amid volatility.

The Asian markets have recovered from their intra-day lows and have trimmed their losses. The Nikkei 225 was down 0.6 per cent at 20,585 and the Hang Seng index had declined 1.2 per cent to 25,820.

The domestic benchmark indices continue to trend upwards and have gained about 0.6 per cent. The market breadth of the Nifty index is biased towards advances. The India VIX is hovering flat at 16.5 levels. The Nifty mid and small-cap indices have gained 1.5 per cent and 1 per cent respectively.

The Nifty futures started the session with a gap-down open at 10,835 and recorded an intra-day low at 10,831. Subsequently, the contract began to trend upwards and breached a key resistance at 10,900. The contract can witness a corrective rally in the near term.

Traders with a near-term view can buy on declines, with a stop-loss at 10,900 levels. A strong rally above the immediate resistance level of 11,000, can take the contract higher to 11,025 and 11,050 levels. Key supports below 10,900 are at 10,870 and 10,850.

Strategy: Make use of intra-day dips to buy the contract with stop-loss at 10,900 levels

Supports: 10,900 and 10,870

Resistances: 10,975 and 11,000

Published on August 06, 2019

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