Technical Analysis

Nifty Call: Go long with stop-loss at 11,480 levels

Yoganand D BL Research Bureau | Updated on September 15, 2020 Published on September 15, 2020

Nifty 50 September Futures (11,498)

The bellwether equity indices - Sensex and Nifty 50, commenced the session with a gap-up open amid mixed Asian market. The Nikkei 225 index slipped 0.4 per cent to 23,454 while the Hang Seng index climbed 0.4 per cent to 24,737 levels in today's session. After an initial decline, the benchmark indices continued to trend upwards, advancing about 0.5 per cent each. The market breadth of the Nifty 50 index is biased towards advances. Whereas the India VIX fell 1 per cent to 20.9 levels. Both the Nifty mid and small-cap indices have climbed 0.9 per cent and 0.6 per cent respectively. Among the sectoral indices, the Nifty pharma index was the top gainer that jumped 2.5 per cent, followed by Nifty IT and PVT Bank indices that rallied 0.8 per cent each. There is selling interest in Nifty realty sector index which slipped 0.8 per cent.

The Nifty September month contract started the session with a gap-up open at 11,472. Following an initial decline the contract took support at 11,450 and continued to trend upwards. The contract tests a key resistance at 11,500. An emphatic break above this barrier can take the contract northwards to 11,525 and then to 11,550 levels. Next resistances are at 11,580 and 11,600. On the other hand, a decisive fall below the immediate support level of 11,450 can drag the contract down to 11,425 and 11,400 levels. Subsequent supports are at 11,380 and 11,350 levels.

Strategy: Go long above 11,500 with a fixed stop-loss at 11,480 levels

Supports: 11,450 and 11,425

Resistances: 11,500 and 11,525

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Published on September 15, 2020
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