Technical Analysis

Nifty Call: Buy in dips with a stop-loss at 10,695

Yoganand D, BL Research Bureau | Updated on November 28, 2018

Nifty 50 November Futures (10,728)

Taking positive cues from Asian markets, the Nifty and Sensex started the session with a gap-up open. The Nikkei 225 surged 224 points or 1 per cent to 22,177 and Hang Seng index advanced 345 points or 1.3 per cent to 26,677 levels.

Domestic benchmark indices gained 0.6-0.8 per cent.The Nifty futures contract opened on a positive note at 10,699. The contract surpassed a key resistance at 10,700 and extended its up-move to record an intra-day high of 10,747.

The near-term outlook will remain positive as long as the contract trades above 10,700 levels. India VIX, volatility index, declined 2 per cent to 17.91 levels. The contract can extend its upmove and test resistance at 10,750 levels. A decisive break above this level can strengthen the upmove and take the contract higher to 10,775 and 10,800.

Traders can make use of intra-day dips to buy the contract while maintaining a fixed stop-loss at 10,695 levels. But a decisive plunge below can drag the contract down to 10,680 and 10,650 levels.

Strategy: Near-term stance is bullish. Buy in dips with a stop-loss at 10,695

Supports: 10,700 and 10,680

Resistances: 10,745 and 10,775

 

Published on November 28, 2018

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