Technical Analysis

Nifty Active Call: Sell the contract in rallies with a tight stop-loss at 10,135 levels

Yoganand D BL Research Bureau | Updated on January 09, 2018 Published on December 05, 2017

Nifty 50 December Futures (10,117)

Taking bearish cues from negative Asian markets, the domestic benchmark indices, the Nifty and the Sensex, started the session in red.

The US markets had closed on a mixed note on Monday. The Dow Jones advanced 58 points to close at 24,290, while the S&P 500 slipped marginally by 2.7 points to 2,639 levels. Tech stocks’ benchmark Nasdaq Composite index tumbled 72 points or 1 per cent to end at 6,775 levels.

In Asian markets, the Nikkei 225 index fell 84 points or 0.4 per cent to 22,622 and Hang Seng index declined 170 points or 0.6 per cent to 28,967 levels.

The Nifty December futures contract started the session with a gap-down open at 10,126. After an initial corrective up move, the contract marked an intra-day high of 10,145 and continued to decline.

Slipping below the key support level of 10,100, the contract recorded an intra-day low of 10,091. The contract experiences selling pressure at higher levels.

Traders with a short term perspective can sell the contract in rallies while maintaining a fixed stop-loss at 10,135 levels. Resumption of the downtrend and a decisive plunge below the key base level of 10,100 can pull the contract down to 10,075 and then to 10,050 levels.

Key immediate resistances are placed at 10,130 and 10,160. Only a strong rally beyond 10,160 can bring back bullish momentum and take the contract higher to 10,180 and 10,200 levels.

Strategy: Sell the contract in rallies with a tight stop-loss at 10,135 levels.

Supports: 10,100 and 10,075

Resistances: 10,130 and 10,160

Published on December 05, 2017

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.