Nifty call: Go long with a stop-loss at 8,340

Gurumurthy K BL Research Bureau | Updated on January 23, 2018 Published on May 19, 2015

Nifty May Futures (8,370)

The Nifty futures contract is trading strong and is gaining momentum. The contract opened on a negative note today with a huge gap down at 8,301 and fell to a record a low of 8,267.7. However, it has managed to reverse sharply higher from this low. Also, the contract has breached its important 8,330-8,350 resistance zone which will now act as a good support. The outlook is bullish. Intraday dips to this support zone could find fresh buyers coming into the market. The contract can rise to 8,400 and 8,420 now. A further break above 8,420 can target 8,450 there after.

Traders can go long with a stop-loss at 8,340 for the target of 8,410. Intraday dips to 8,350 can be used to accumulate longs.

The outlook for the contract will turn negative only on a strong break below 8,300.

Strategy: Go long with a stop-loss at 8,340

Supports: 8,350, 8,330

Resistances: 8,400, 8,420

Published on May 19, 2015
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