Comments
BL Research Bureau
Nifty 50 August Futures (11,107)
Indian benchmark indices, Nifty 50 spot and Sensex spot, opened the day with a gap-up. But both the indices failed to sustain the gains and started to decline, and are now trading lower by 0.15 per cent and 0.25 per cent, respectively.
The Asian market looks mixed with both winners and losers. While the Nikkei 225 ended the session with a considerable loss of 2.8 per cent, the Hang Seng is trading flat. Also, the Shanghai Composite has gained 0.6 per cent whereas the KOSPI has lost 0.8 per cent. So, the major Asian indices are clearly divided.
In the domestic set up, the market breadth of the Nifty 50 is favouring the bulls, as 30 out of the 50 stocks are in the green, despite the index being marginally down. Interestingly, apart from the benchmarks, all other indices are trading higher, except the Midcap 50, which is down one-third of a per cent. Among the sectoral indices, the Nifty pharma index is the top gainer, keeping up with its recent bullish momentum. It is now up 3 per cent. The Nifty Media is the top loser, down nearly 1 per cent.
The August futures contract of the Nifty 50 index opened higher at 11,123 versus Thursday’s close of 11,093 and then rose to mark an intraday high of 11,150. But unable to extend beyond that level, it started descending and is now hovering at 11,100. The contract has a notable support band at 11,040 and 11,075. As long as the price remains above this level, the likelihood of a rally from the current level cannot be rejected. The 38.2 per cent Fibonacci retracement level of the previous trend coincides with the 11,040 level, making it a strong support. So, till this level is breached, a downswing from hereon cannot be confirmed. Below 11,140, the support is at 11,000.
Meanwhile, on the back of support, traders can initiate fresh long positions with stop-loss at 11,040.
Strategy: Initiate fresh longs with stop-loss at 11,040
Supports: 11,040 and 11,000
Resistances: 11,160 and 11,210
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.