The Nifty Call: Go long above 14,500 with fixed stop-loss

| Updated on April 15, 2021

As long as the contract trades below 14,500, the near-term stance will remain bearish

The Sensex and the Nifty 50 started the session marginally in the negative territory and bounced up initially. But they failed to sustain in the positive territory. The benchmark indices slipped into the negative territory witnessing selling interest.

Asian markets are displaying mixed cues. The Nikkei 225 is trading marginally in the positive at 29,642, while the Hang Seng index has slumped 0.6 per cent to 28,737 in today’s session. China’s CSI 300 index is also down 0.76 per cent at 4,942.

On the domestic front, the Sensex and the Nifty 50 have fallen about 0.6 per cent each. The market breadth of the Nifty 50 is biased towards declines. There is an increase in volatility as the India VIX index has jumped 3.7 per cent to 21.2 levels. Both the Nifty mid- and small-cap indices have declined 0.45 per cent and 0.6 per cent respectively. Selling interest is witnessed in the Nifty Auto and PSU Bank indices that have fallen 2 per cent and 1.7 per cent respectively. Only Nifty Pharma and Metal indices are featuring in the positive arena, gaining 1.1 per cent and 0.5 per cent respectively.

The Nifty April month futures contract started the session on a positive note, opening at 14,574 against the previous close of 14,541. After recording an intraday high at 14,615, the contract began to decline on the back of selling interest. The contract has slipped below the key base level of 14,500 and has marked an intraday low at 14,374. The contract is down 0.6 per cent, hovering at 14,455 levels. As long as the contract trades below 14,500, the near-term stance will remain bearish. It is currently range-bound between 14,430 and 14,480. A rally above 14,480 can take the contract higher to test the key hurdle at 14,500. A further rally beyond 14,500 can take the contract higher to 14,540 and then to 14,560. Conversely, if the contract declines below 14,430, it can pull the contract down to 14,400 and then to 14,375 levels. Traders can go long on a rally above 14,500 with fixed stop-loss.

Supports: 14,430 and 14,400

Resistances: 14,500 and 14,540

Published on April 15, 2021

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