Nifty call: Initiate fresh long position with a stop-loss at 7,840 levels

Yoganand D BL Research Bureau | Updated on January 20, 2018 Published on May 18, 2016

Nifty 50 May Futures (7,866)

On Wednesday, the Nifty futures contract started the session on a negative note at 7,856.

The contract declined in the initial hours of trading and marked an intra-day low at 7,811. But it took support at this low and bounced back. The contract is on a recovery mode now.

Traders with a short-term perspective can make use of this recovery to initiate long position with a fixed stop-loss at 7,840.

The contract can trend northwards and test resistance at 7,880 and then at 7,900. A strong rally beyond 7,900 can take the contract up to 7,925 or even to 7,950 in the short term.

However, strong fall below the immediate supports at 7,850 and 7,830 can drag the contract down to 7,810 and 7,800 in the near term.

An emphatic downward breakthrough of the key support at 7,800 can strengthen the selling pressure and drag the contract further down to 7,770 and 7,750 levels.

Strategy: Make use of the recovery to initiate fresh long position with a stop-loss at 7,840 levels.

Supports: 7,850 and 7,830

Resistances: 7,880 and 7,900

Published on May 18, 2016
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