Stocks

Nifty call: Make use of dips to go long with a fixed stop-loss at 8,220 levels

Yoganand D BL Research Bureau | Updated on January 16, 2018 Published on December 08, 2016

nifty

Nifty 50 December Futures (8,255)

After taking positive cues from the global markets, the Nifty 50 and Sensex started the session on a firm note.

Asian markets hit their one-month high after taking bullish cues from the US markets. In the domestic market, strong buying is seen in metal and auto stocks.

The Nifty 50 futures contract started the day with a gap-up opening at 8,176, which is also the day's low. The contact extended its bullish momentum and breached the immediate key resistance at 8,200.

Subsequently, the contract registered an intra-day high at 8,262 levels. Near-term outlook will remain bullish as long as the contract trades above the key support level of 8,220.

Traders with a short-term perspective can make use of dips to buy the contract with a stop-loss placed at 8,220 levels.

The contract can continue to move up and test resistance at 8,260 and then at 8,275 levels. Strong rally beyond 8,275 can take the contract higher to 8,300 levels.

Conversely, if the contract declines below 8,220 it can find support at 8,200. But a decisive plunge below 8,200 will bring back selling pressure and pull the index down to 8,180 and 8,160 levels.

Strategy: Make use of dips to go long with a fixed stop-loss at 8,220 levels

Supports: 8,220 and 8,200

Resistances: 8,260 and 8,275



Published on December 08, 2016
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