Nifty Call: Go long on a strong break above 11,600

Nifty 50 September Futures (11,596)

After taking cues from the negative Asian markets – the Sensex and the Nifty - started the day in the red but subsequently both the indices entered the positive territory on short-covering. 

However, the key resistances are limiting the upside. The market breadth of the Nifty index is biased towards advances. The small and mid-cap indices have bounced up strongly gaining about 0.6 and 1.2 per cent, respectively.

The Nifty September futures contract started the session with a gap-down opening at 11,550 tracking the underlying Nifty index. After registering an intra-day low at 11,512, the contact made a strong recovery.

But the contract tested a key resistance at 11,600 and managed to surpass this level. The contract recorded an intra-day high at 11,615 and has now retreated slightly. The bias continues to be positive for the contract.

An emphatic breakthrough of the resistance at 11,600 will strengthen the up-move and take the contract northwards to 11,625 and 11,650 levels. Any corrective decline can find support at 11,575 and 11,550 levels. 

Next key supports below 11,550 are at 11,530 and 11,500. Fresh long positions can be initiated with a fixed stop-loss on a decisive break above 11,600 levels.

Strategy: Go long on a strong break above 11,600

Supports: 11,575 and 11,550

Resistances: 11,600 and 11,625

 

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get





Related

MORE FROM BUSINESSLINE


 Getting recommendations just for you...
This article is closed for comments.
Please Email the Editor