Stocks

The Nifty call: Buy in declines

Yoganand D BL Research Bureau | Updated on January 16, 2018 Published on December 29, 2016

Nifty 50 December Futures (8,054)

The Nifty futures contract started the December derivatives expiry session at 8,028 and recorded an intra-day low at 8,025 levels. Subsequently, witnessing buying interest, the contract entered the positive territory by breaching the immediate resistance at 8,031. The contract marked an intra-day high at 8,060 and sustaining its bullish momentum. The advances/declines ratio in Nifty 50 is biased towards advances. Traders with a short-term perspective can consider initiating fresh long positions on intra-day dips with a stop-loss at 8,035. Continuation of the up move the contract can test resistance at 8,060. Strong rally beyond 8,060 can take the contract northwards to 8,080 and 8,100 levels in the short term. Conversely, the contract can bring back selling pressure on a strong slump below 8,025. Next key supports below 8,025 are at 8,000 and 7,980 levels.

Strategy: Buy the contract in declines while maintaining a fixed stop-loss at 8,035 levels.

Supports: 8,025 and 8,000

Resistances: 8,060 and 8,080





Published on December 29, 2016
null
This article is closed for comments.
Please Email the Editor