Technical Analysis

Nifty call: Go long on strong rally above 11,375, with fixed stop-loss

| Updated on July 23, 2019 Published on July 23, 2019

Nifty 50 July futures (11,361)

After a flat open, the Sensex and the Nifty moved sideways in a narrow range. The Asian markets are trading in positive territory, the Nikkei 225 is up almost 1 per cent at 21,620, and the Hang Seng index added 0.3 per cent to 28,456 levels.

The market breadth of the Nifty index is marginally biased towards advances. The India VIX volatility index has gained 2.4 per cent to 13.3. The Nifty small cap index has advanced 0.4 per cent, while the Nifty mid cap index has slumped 0.3 per cent, witnessing selling interest. The Nifty PSU Bank continues to be under selling pressure and has declined 1.4 per cent. The Nifty IT and FMCG sectors have gained 0.8 per cent and 0.7 per cent respectively.

The Nifty Futures contract started the session in marginally positive territory at 11,368. After recording an intra-day low at 11,326, the contract began to recover. It has marked an intra-day high at 11,369.

A strong rally above the immediate resistance at 11,375 can take the contract higher to 11,400. A further rally above 11,400 can push the contract northwards to 11,425 and 11,450 levels. Key supports below 11,325 are at 11,300 and 11,280 levels. Traders with a near-term view can go long on a decisive rally above 11,375, with a fixed stop-loss.

Strategy: Go long on a strong rally above 11,375, with a fixed stop-loss

Supports: 11,325 and 11,300

Resistances: 11,375 and 11,400

Published on July 23, 2019

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