1 August 2016


"BUY NIFTY ABOVE 8650 TGT 8685/8730 SL 8620"
Nifty consolidated after making a fresh one year high on the back of negative cues coming in from international markets. However, the 40 point premium on Nifty futures could indicate the first signs of exuberance creeping into the markets. The Sensex on Monday wiped off all its gains to settle the day 48 points lower, while the broader Nifty ended below its key 8650-mark. The headline indices edged lower amid uncertainties over the passage of the Goods and Services Tax (GST) Bill, which entered the last mile as the government circulated the new draft on GST to Rajya Sabha members.
Finally, the Sensex ended with a loss of 49 points at 28003. The Sensex opened at 28083 touched an intra-day high of 28285 and low of 27874. The Nifty started the week on a positive note at 8654 and extended its bullish momentum to register an intraday high at 8711 levels. However, experiencing selling pressure, the contract began to decline and breached the key level at 8591 and recorded an intraday low & closed at 8636 level.
Markets are in a longer term bull trend, they made yet another intraday high for the year. We continue to hold an upbeat outlook and would stay long for a medium term target of 8800. Traders with a short-term view can initiate fresh short positions on a fall below 8580 levels with a stop-loss at 8650 levels. The contract can decline to 8550 and then to 8530 levels. Next key support is at 8500. On the hand, a strong rally beyond 8725 is needed to reinforce the bullish momentum once again and take the contract higher to 8750. Subsequent resistances are at 8780 and 8800 levels.
Supports: 8580 and 8500
Resistances: 8720 and 8800

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