Markets

The Nifty call: Initiate fresh long positions on dips with stop-loss at 10,090

Yoganand D, BL Research Bureau | Updated on October 25, 2018

Nifty 50 October Futures (10,136)

The Sensex and the Nifty indices started the session with a gap-down open, after taking cues from the negative global markets. Following a sharp fall in the US markets, the Asian stocks commenced the session on bearish note. The Dow Jones plunged 608 points or 2.4 per cent to close at 24,583 last session and S&P 500 tumbled 3 per cent to close at 2,656 levels. The Nikkei 225 index nose-dived 822 or 3.7 per cent to 21,268 levels and Hang Seng index slumped 468 points or 1.9 per cent to 24,787 levels in today's session.

Following an initial decline, the Sensex and the Nifty are recovering from their intra-day lows, trimming the loss. The Nifty October month began the session with a gap-down open at 10,140. Nevertheless, the contract started to recover after marking an intra-day low at 10,073. Key support at 10,100 is cushioning the contract. Traders can make use of intra-day dips to initiate fresh long positions with a stop-loss at 10,090 levels. The contract can test resistance at 10,150 and 10,175. A further rally can encounter resistance at 10,200 and 10,225 levels. On the other hand, a decisive plunge below 10,100 can drag the contract down to 10,070 and 10,050 levels.

Strategy: Initiate fresh long positions on dips with a tight stop-loss at 10,090

Supports: 10,100 and 10,070

Resistances: 10,150 and 10,175

Published on October 25, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like