Technical Analysis

Nifty Call: Go long above 10,930 with fixed stop-loss

Yoganand D BL Research Bureau | Updated on August 08, 2019 Published on August 08, 2019

Nifty 50 August Futures (10,912)

The key benchmark indices - the Sensex and the Nifty began the session in green, taking positive cues from the Asian markets. The Nikkei 225 is up by 0.37 per cent to 20,593 and Hang Seng index has advanced 0.75 per cent to 26,193 levels.

After initial decline to the negative territory, the Sensex and the Nifty have started to trend upwards once again. The market breadth of the Nifty index is biased towards advances. The India VIX, volatility index has slumped 2 per cent to 16.38 levels. The Nifty mid and small-cap indices are trading mixed. Buying interest is seen in the Nifty IT index which has gained 1 per cent.

The Nifty August month contract started the session on a positive note, opening at 10,896. After marking an intra-day low at 10,866 the contract began to trend upwards and recorded an intra-day high at 10,931 levels. It faces a key resistance in the band between 10,925 and 10,930.

A decisive break above this barrier will reinforce the near term bullish momentum and take the contract higher to 10,950 and 10,975 levels. Next key resistance is at 11,000. Conversely, a strong fall below 10,875 can drag the contract down to 10,850 and 10,825 levels. Traders should tread with caution and initiate fresh long positions above 10,930 levels with a fixed stop-loss.

Strategy: Go long above 10,930 with a fixed stop-loss

Supports: 10,875 and 10,850

Resistances: 10,930 and 10,950

Published on August 08, 2019
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