Nifty call: Go long on intra-day dips with tight stop-loss at 10,200

Yoganand D BL Research Bureau | Updated on January 08, 2018 Published on October 24, 2017

Nifty 50 October futures (10,233) Despite mixed global cues, the domestic benchmark indices the Nifty and Sensex started the session on a positive note. The Nifty futures contract also started the session on a positive note, opening at 10,203. After marking an intra-day low of 10,189, the contract resumed its up-move, breaching the key resistance at 10,200.

The market breadth of the Nifty index is biased towards advances. The contract recorded an intra-day high of 10,244 and began to witness selling interest. However, the near-term outlook will remain positive as long as the contract trades above the key support level of 10,200.

Traders with a short-term view can make use of intra-day dips to buy the contract, while maintaining a stop-loss at 10,200 levels.

A sustained up-move coud see the contract test resistances at the 10,240 and 10,250 levels. A strong rally beyond 10,250 can push the contract higher to 10,275 levels. On the other hand, desist from taking long positions if the contract declines below the key support level of 10,200 levels. The next supports to note are placed at 10,180 and 10,150 levels.

Strategy: Make use of intra-day dips to go long with a tight stop-loss at 10,200 levels

Supports: 10,200 and 10,180

Resistances: 10,240 and 10,250

Published on October 24, 2017
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