Technical Analysis

Nifty Call: Buy with a stop-loss at 11,120 levels

Yoganand D | Updated on July 21, 2020

Nifty 50 July Futures (11,164)

The Sensex and Nifty 50 commenced the session with a gap-up, taking cues from the bullish Asian markets and continued to feature in the positive territory. The Nikkei 225 climbed 0.7 per cent to 22,884 and Hang Seng jumped two per cent to 25,572 in today's session. Both, Sensex and Nifty 50 jumped more than 1.2 per cent each. The market breadth of Nifty 50 index was biased towards advances.

On the other hand, the India VIX declined two per cent to 24.2 levels. The Nifty mid and small-cap indices rallied 0.6 per cent and 0.7 per cent, respectively. The broader index, Nifty 500 jumped one per cent to 9,076 levels. The Nifty realty and Nifty PSU Bank indices were the top gainers that have jumped 2.9 per cent and 2.5 per cent correspondingly. While the Nifty Pharma and FMCG have slumped one per cent and 0.4 per cent, respectively. Buying interest is seen in Nifty Auto and Nifty Bank sectoral indices.

Following a gap-up open at 11,122, the Nifty 50 July month contract extended the up-move. It recorded an intra-day low at 11,097 and resumed the rally. Currently the contract is hovering near the intra-day high of 11,168. Continuation of the up-move can test resistance at 11,200. A further break above this barrier can take the contract higher to 11,225 and then to 11,250 levels. Key supports are at 11,120 and 11,100. Next supports below 11,100 are at 11,070 and 11,050. Traders can buy on dips with a stop-loss at 11,120.

Strategy: Buy with a fixed stop-loss at 11,120 levels

Supports: 11,120 and 11,100

Resistances: 11,200 and 11,225

 

Published on July 21, 2020

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