Technical Analysis

Nifty Call: Buy with stop-loss at 10,930 levels

Yoganand D | Updated on July 20, 2020

Nifty 50 July Futures (10,965)

The Sensex and Nifty 50 commenced the session with a gap-up open and continued to hover in the positive territory. The Asian markets are trading flat in today's session; the Nikkei 225 is hovering at 22,717 and the Hang Seng index is trading at 25,119. Shanghai Shenzhen CSI 300 Index has jumped 2.8 per cent to 4,671 levels. The Sensex and Nifty 50 have gained 0.7 per cent each. The market breadth of the Nifty is biased towards advances. The India VIX- volatility index has jumped 2.3 per cent. The Nifty mid and small-cap indices have advanced one per cent each in today’s session. The top sectoral gainers are Nifty Bank and Nifty Financial Service surged 1.9 per cent and 1.8 per cent, respectively. On the other hand, the Nifty Pharma and FMCG are the losers that fell 1.4 per cent and 0.2 per cent, respectively.

The Nifty 50 July futures contract started the session with a gap-up open at 10,955. After an initial decline to 10,931 the contract continued to trend upwards. It has recorded an intra-day high at 10,987. The near-term outlook stays bullish as long as the contract trades above 10,900 levels. Traders can buy the contract on declines with a stop-loss at 10,930. A decisive break above 10,990 can take the contract northwards to 11,030 and 11,050. On the other hand, a decisive fall below 10,900 can bring back selling interest and pull the contract down to 10,870 and then to 10,850 levels.

Strategy: Buy in declines with a fixed stop-loss at 10,930 levels

Supports: 10,900 and 10,870

Resistances: 10,990 and 11,030

Published on July 20, 2020

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