Technical Analysis

Nifty Call: Buy in declines with a stop-loss at 12,000 levels

Yoganand D BL Research Bureau | Updated on November 20, 2019

Nifty 50 November Futures (12,048)

The Sensex and the Nifty began the session with a gap-up open on the back of domestic buying interest in the large cap stocks despite weak global cues. The Nikkei 225 has slipped 0.6 per cent to 23,148 and Hang Seng index has declined 0.7 per cent to 26,892 levels in today's session.

Both the Sensex and the Nifty extended their rally and have gained 0.7 per cent each in today's session. The market breadth of the Nifty is biased towards advances. The India VIX has slumped 1.6 per cent to 15.15 levels.

The Nifty mid and small-cap indices have climbed 0.3 per cent each. Buying interest is witnessed in the Nifty Media and Pharma indices which have advanced 3 per cent and 2.5 per cent respectively. The Nifty November month contract began the session with a positive start at 11,979 and continued to trend upwards after an marking an intra-day low at 11,972.

The contract breached a key resistance at 12,000 and extended the rally. The near-term outlook stays positive above 12,000. Traders can buy with a stop-loss at 12,000. A strong rally above the immediate resistance at 12,070 can take the contract higher to 12,100. Key supports below 12,000 are placed at 11,970 and 11,950 levels

Strategy: Buy in declines with a stop-loss at 12,000 levels

Supports: 12,000 and 11,970

Resistances: 12,070 and 12,100

Published on November 20, 2019

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