Nifty Call: Go short on a fall below 11,450 levels

Nifty 50 August Futures (11,458)

Taking cues from the bearish Asian markets, the domestic benchmark indices - the Nifty and the Sensex started the session with a gap-down opening and continued to feature in the negative territory.

Nikkei 225 index tumbled 1.33 per cent to 222,298 levels and Hang Seng index declined 0.93 per cent to 28,342 levels. 

The market breadth of the Nifty index is biased towards declines. The August month Nifty futures contract also began the session with a gap-down opening at 11,465.

After an initial rally, the contract marked an intraday high of 11,485 and started to decline, witnessing selling pressure. But, after recording an intraday low of 11,433, the contract has recovered slightly. That said, the contract could experience selling pressure at higher levels.

Therefore, traders with a near-term view should tread with caution and initiate fresh short positions on a fall below 11,450 levels with a fixed stop-loss. The contract can test supports at 11,430 and 11,400 levels in the short term.

A strong fall below 11,400 can drag the contract down to 11,375 and then to 11,350 levels. Key resistances are placed at 11,485, 11,500 and 11,525.

Strategy: Go short on a fall below 11,450 levels with a fixed stop-loss

Supports: 11,450 and 11,425

Resistances: 11,485 and 11,500

 

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