Technical Analysis

Nifty Call: Go long above 11,585 levels with a fixed stop-loss

Gurumurthy K | Updated on August 23, 2018 Published on August 23, 2018

Nifty 50 August Futures (11,572)

Taking mixed cues from the global markets, the Sensex and Nifty started the session on a positive note, but began to witness selling pressure at higher levels.

The Nikkei 225 was up by 0.2 per cent at 22,410, while the Hang Seng index was down by 0.5 per cent at 27,778.

Both the Sensex and the Nifty declined subsequently and entered the negative territory. Currently, the benchmark indices are vacillating between positive and negative territories. The market breadth of the Nifty index is biased towards declines.

The Nifty August month futures contract started the session with a gap-up opening at 11,614 levels. After marking an intra-day high at 11,622, the contract began to decline on due to selling pressure.

The contract marked an intra-day low of 11,553 and took support at around 11,550 levels. As long as this support level holds, the near-term outlook will remain positive for the contract.

The contract is range-bound between 11,570 and 11,585. A strong rally above 11,585 can take the contract higher to 11,600 and 11,620 levels.

Traders can buy on a rally above 11,585 levels, with a fixed stop-loss. Key supports below 11,570 are at 11,550 and 11520 levels.

Strategy: The contract is range-bound between 11,570 and 11,585. Go long above 11,585 levels with a fixed stop-loss.

Supports: 11,570 and 11,550

Resistances: 11,585 and 11,600

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