Technical Analysis

Nifty Call: Go short with a stop-loss at 11,705 levels

Yoganand D, BL Research Bureau | Updated on August 30, 2018 Published on August 30, 2018

Nifty 50 August Futures (11,659)

The Sensex and the Nifty opened the session in the positive territory but immediately slipped. Thereafter, both the benchmark indices continued to trade in the negative territory with a negative bias.

The market breadth of the Nifty index is biased towards declines. Among the sectoral indices, the Nifty bank, Nifty Pvt Bank and Nifty Finance Services were down about 0.6 per cent dragging the benchmark index.

The Nifty August futures started the expiry session on a positive note, opening at 11,715. However, the contract started to decline after witnessing selling pressure and entered the negative territory.

The contract breached its key support at 11,700 and 11,680 levels and marked an intra-day low at 11,650 levels. The near-term outlook will remain bearish as long as the contract trades below 11,700 levels.

Traders with a near-term view can go short with a stop-loss at 11,705. The contract can test support at 11,650. A decisive fall below this level can pull it lower to 11,630 and then to 11,600 levels in the short term.

Significant resistances are placed at 11,700 and 11,720. A strong rally beyond 11,720 can bring back buying interest and take the contract higher to 11,740 and 11,760 levels.


Strategy: Go short in intra-day rallies with a fixed stop-loss at 11,705 levels.

Supports: 11,650 and 11,630

Resistances: 11,680 and 11,700

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