The Nifty call: Go long on rally above 8,600

Yoganand DBL Research Bureau ​ Updated - January 24, 2018 at 10:48 PM.

Nifty April futures (8,574)  

The Nifty futures extended its bullish momentum with a positive open at 8,582 levels. However, the contract turned volatile and it marked an intra-day high at 8,589 levels and a low at 8,551 levels. The contract is trading sideways in a band between a key support and resistance level at 8,550 and 8,600 respectively.

A strong break above or below this sideways band would give a clear trading signal or directional move.

Traders with a short-term perspective should tread with caution as long as the contract trades in the 8,550 to 8,600 zone. A strong rally above key resistance at 8,600 will be a cue for initiating a long position with a tight stop-loss.

The contract can trend to 8,625 and then to 8,650 levels in the short-term. However, a downward break out of 8,550 levels will bring forth selling pressure and pull the contract down to 8,530 or 8,500 in the near term.

 

Strategy: Go long only on a strong rally above 8,600 

 

Supports: 8,550 and 8,530

Resistances: 8,625 and 8,650

 

Published on March 31, 2015 07:42