Technical Analysis

Nifty call: Wait for confirmation before initiating fresh positions

Akhil Nallamuthu | Updated on September 07, 2020 Published on September 07, 2020

Nifty 50 September futures (11,325)

Equity markets across Asia have been sluggish since morning. Though the Nikkei 225 and the Hang Seng opened with a gap-down, post that, these indices have traded sideways. Taking cues from the Asian market, the domestic benchmark indices have been trading flat since morning. The Nifty 50 and the Sensex are now hovering around Friday’s closing level.

The market breadth of the Nifty 50 index is a bit bearish as the advances-declines ratio stands at 21-29. The mid-cap and small-cap indices look mixed and so do the sectoral indices. The Nifty IT index is the top gainer, up by 0.6 per cent, whereas the Nifty realty index is the top loser, down by 0.8 per cent. Volatility is flat as the market at large is sluggish.

The September futures of the Nifty 50 index started today’s session flat at 11,351. It then inched up and marked an intra-day high of 11,372; subsequently, it dipped and registered an intraday low of 11,266, before recovering to the current level of 11,325. Also, 11,300 is a considerable support. The next direction of the trend will be uncertain until it breaches either 11,266 or 11,372. Above 11,372, resistance is at 11,460 and below 11,266, the support is at 11,215.

Strategy: Wait for confirmation before initiating fresh positions

Supports: 11,266 and 11,215

Resistances: 11,372 and 11,460

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Published on September 07, 2020
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