Technical Analysis

Nifty Call : Make use of intra-day rallies to sell with a stop-loss at 11,300

Yoganand D | Updated on July 24, 2019 Published on July 24, 2019

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BL Research Bureau

Nifty 50 July Futures (11,254)

Following a positive start, the Sensex and the Nifty immediately slipped in to negative territory and continues to trade in the red. Both the benchmark indices have slumped over 0.6 per cent. The market breadth of the Nifty index is biased towards declines. The India VIX is hovering flat at 13.3 levels. Selling pressure is seen in the Nifty Mid and Small-cap indices which have declined 1.3 per cent and 1.2 per cent respectively. Apart from the Nifty media index that has gained 1.2 per cent, all the other sectoral indices are trading in the negative territory. The Nifty Metal index has tumbled 2.7 per cent.

The Nifty July contact began the session in the negative territory at 11,319. After marking an intra-day high at 11,355 the contract had resumed the downtrend and extends the decline. The contract has decisively breached a key support at 11,300 and has registered an intra-day low at 11,226. As long as the contract trades below 11,300, the near term stance will remain bearish. Traders can sell in rallies with a stop-loss at 11,300. A decisive fall below the immediate support at 11,226 can drag the contract down to 11,200. Next key supports are at 11,175 and 11,150 levels. Significant resistances above 11,300 are at 11,330 and 11,350 levels.

Strategy: Make use of intra-day rallies to sell with a stop-loss at 11,300

Supports: 11,266 and 11,200

Resistances: 11,300 and 11,330

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Published on July 24, 2019
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