Technical Analysis

Nifty Call: Buy in dips with stop-loss below 11,362

Akhil Nallamuthu BL Research Bureau | Updated on October 15, 2019 Published on October 15, 2019

Nifty 50 October Futures (11,410)

The Nifty, on Monday, closed below a key resistance (11,362) even though it managed to trade above that level briefly. In today’s session the index is trading on a positive note and is currently retesting the same resistance level. The Sensex too has been gaining and is up by 0.6 per cent whereas the Nifty is up by 0.5 per cent. Asian indices are giving mixed cues.

The market breadth of the Nifty 50 is favourable to bulls as 40 out of 50 stocks are in the green today. India VIX, the volatility index is at 17.1 levels, down by 1.8 per cent. Among sectoral indices, Nifty auto index is the top gainer which is up by 1.9 per cent and the Nifty metal index is the weakest, losing 0.7 per cent.

Though the October futures contract of the Nifty 50 index closed below the key level of 11,362 yesterday, the contract still looks bullish. Currently, it is trading at 11,410, well above 11,362. This increases the probability of the futures closing above 11,362. Hence, traders with intraday perspective can buy in dips with a stop-loss below the important level of 11,362.

Strategy: Buy in dips with stop-loss below 11,362

Supports: 11,362 and 11,328

Resistances: 11,440 and 11,500

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Published on October 15, 2019
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