Technical Analysis

Nifty call: Buy on rally above 11,375 with stop-loss at 11,340 levels

Yoganand D | Updated on August 11, 2020 Published on August 11, 2020

Nifty 50 August Futures (11,354)

Both the Sensex and the Nifty 50 commenced Tuesday’s session with a gap-up open, taking positive cues from bullish Asian markets. The Nikkei 225 is up 1.8 per cent and the Hang Seng index has jumped 2 per cent in today's session. After an initial rally, the domestic benchmark indices witnessed some pressure at higher levels. But the indices continue to trade in ranges in positive territory.

The Sensex and Nifty 50 have climbed about 0.75 per cent each. The market breadth of the Nifty is biased towards advances. The India VIX has slumped 3.5 per cent. The Nifty mid and small-cap indices have advanced 0.3 per cent and 0.5 per cent respectively. The sectoral top gainers are Nifty media and metals, which have advanced 2.5 per cent and 2.2 per cent respectively.

The Nifty 50 August month contract started the session on a positive note, opening at 11,349. After marking an intra-day high at 11,376, the contract experienced selling interest and witnessed a correction to record an intra-day low at 11,302.

It took support and has recovered from the intra-day low and tests resistance at 11,375. A strong rally above 11,375 can push the contract northwards to 11,400. Subsequent resistances are at the 11,425 and 11,450 levels. On the downside, a decline below the key support level of 11,300, can bring back selling pressure and pull the contract down to 11,275 and then to 11,250 levels.

Strategy: Buy on a rally above 11,375 with a stop-loss at 11,340 levels

Supports: 11,330 and 11,300

Resistances: 11,375 and 11,400

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Published on August 11, 2020
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