Technical Analysis

Nifty call: Buy in dips with a stop-loss at 8,980 levels

Yoganand D | Updated on April 09, 2020 Published on April 09, 2020

Nifty 50 April Futures (9,046)

The Sensex and the Nifty commenced the session with a gap-up open amid mixed Asian markets. The Nikkei 225 is trading flat at 19,345 levels while Hang Seng index has gained 0.8 per cent to 24,174 levels. The US stock indices, the Dow Jones and S&P 500 had gained 3.4 per cent each in the previous session. So far, the domestic benchmark indices the Sensex and the Nifty have surged 3.5 per cent and 3.6 per cent respectively. The market breadth of the Nifty is biased towards advances. The India VIX has slumped 3 per cent to 50.6 levels. The Nifty mid and smallcap indices have advanced 3.5 per cent each. All the sectoral indices are trading in the positive territory; the Nifty Auto and Pharma are the top gainers that have jumped 8 per cent and 6.9 per cent correspondingly.

The Nifty April month contract started the session with a gap-up open at 8,910 levels. After marking an intra-day low at 8,891 the contract resumed the up-move and breached a key resistance at 9,000. The contract has recorded an intra-day high at 9,073 levels. The near-term view stays positive as long as the contract trades above 9,000 levels. Traders can buy in dips with a stop-loss at 8,980 levels. A decisive rally above 9,070 can test resistance at 9,100. Subsequent resistances are at 9,150 and 9,200 levels. On the other hand, a conclusive slump below 9,000 can bring back selling interest and pull the contract down to 8,950 and then to 8,900 levels.

Strategy: Buy in dips with a stop-loss at 8,980 levels

Supports: 9,000 and 8,950

Resistances: 9,070 and 9,100

BL Research Bureau

Published on April 09, 2020

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