Technical Analysis

Nifty 50 April Futures (8,660)

Yoganand D, BL Research Bureau | Updated on March 27, 2020 Published on March 27, 2020

Taking cues from the positive global markets, the domestic equity indices- the Sensex and the Nifty started the session with a gap-up open. The key US benchmark indices, Dow Jones and S&P 500 had gained over 6 per cent each last session. The Nikkei 225 index has surged 3.8 per cent to 19,389 and Hang Seng index has advanced 0.8 per cent to 23,533 levels in today's session. After initial rally, both the Sensex and the Nifty have begun to decline witnessing selling interest and profit booking at higher levels. The key benchmark indices are currently wavering between positive and negative territory. The market breadth of the Nifty index is biased towards declines. The India VIX has fallen about 0.7 per cent to 71 levels. Though the Nifty mid cap index has declined 0.6 per cent but the Nifty small-cap index has advanced 1 per cent. The Nifty Bank index has gained 2.5 per cent witnessing buying interest in the private sector banks. On the other hand, Nifty Auto index has slumped 2 per cent on the back of selling pressure.

The Nifty April month contract commenced the session with a large gap-up open at 8,938. After recording an intra-day high at 9,044 the contract began to decline experiencing selling pressure at higher levels. The contract breached key supports at 8,800 and 8,700 to mark a low at 8,563 levels. But, it recovered and resumed its downtrend to make a new intra-day low of 8,525. A strong rally above the immediate resistance level of 8,700 can strengthen the corrective up-move and take the contract higher to 8,750 and then to 8,800 levels. But the contract will be bearish until it remains below 8,700. Traders can consider buying above 8,700 levels with a fixed stop-loss. Conversely, if the contract falls below 8,650 it can test the support at 8,500. Next key support is at 8,400.

Strategy: A strong rally above 8,700 will be cue for taking long positions with a fixed stop-loss

Supports: 8,500 and 8,400

Resistances: 8,700 and 8,750

Published on March 27, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.