Technical Analysis

Nifty Call: Buy in dips with fixed stop-loss at 10,850 levels

Yoganand D BL Research Bureau | Updated on September 18, 2019 Published on September 18, 2019

Nifty 50 September Futures (10,875)

Following a positive started the Sensex and the Nifty began to decline witnessing selling pressure. Subsequently, the benchmark indices turned choppy and began to move sideways with a positive bias.

The Asian markets are trading flat. The market breadth of the Nifty index is biased towards advances. The India VIX has slumped 2 per cent to 15.6 levels in today's session. Buying interest is seen in the Nifty mid and small cap indices that have gained 0.4 per cent each. Baring the Nifty FMCG index, all the sectoral indices are hovering in the positive territory. The Nifty PSU Bank and metal index are the top gainers which have advanced 1.6 per cent and 1.4 per cent respectively.

The Nifty September month index futures began the session in positive territory, opening at 10,889. After marking an intra-day high at 10,896 the contract started to decline and recorded an intra-day low at 10,826. But, it managed to bounce from the intra-day low and breached an immediate resistance at 10,860 levels. The contract can extend the corrective rally and test resistance at 10,900.

An emphatic break above this level will pave way for an up move to 10,925 and then to 10,950 levels in the near term. On the other hand, a decisive fall below the key support level of 10,830 can drag the contract down to 10,800. Subsequent supports are at 10,780 and 10,750 levels.

Strategy: In a corrective rally, buy in dips with a fixed stop-loss at 10,850 levels

Supports: 10,860 and 10,830

Resistances: 10,900 and 10,925

Published on September 18, 2019
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