Technical Analysis

Nifty Call: Buy on declines with stop-loss at 13,040

Yoganand D | Updated on December 01, 2020 Published on December 01, 2020

Nifty 50 December Futures (13,102)

The domestic benchmark indices -- Sensex and Nifty 50, began the session marginally on a positive note taking bullish cues from the Asian markets. The Nikkei 225 has gained 1.3 per cent to 26,787 and Hang Seng index has advanced 0.9 per cent to 26,585 levels in today's session. Both Sensex and Nifty continued to trend upwards and climbed 0.7 per cent each. The market breadth of the Nifty 50 is biased towards advances. As the India VIX has also advanced 5 per cent to 20.8 levels, traders should tread with caution. The Nifty mid and small-cap indices have rallied 0.5 and 0.9 per cent respectively. Only the Nifty FMCG index is trading marginally in the negative territory. Top sectoral gainers are the Nifty Realty and PSU Bank indices that have gained 2.7 per cent and 2.1 per cent correspondingly.

The Nifty 50 December month contract began the session on a positive note, opening at 13,031. After an initial decline to an intraday low of 12,992 the contract rebounded and continues to trend upwards. The contract now tests resistance at 13,100. As long as the contract trades above 13,050 the near-term stance remains positive. Traders can buy the contract with a stop-loss at 13,040. A decisive rally above the current resistance level of 13,100 can push the contract higher to 13,130 and then to 13,150. On the downside, a decisive fall below 13,050 can bring back selling interest and drag the contract down to 13,025 and then to 13,000. Next supports are at 12,980 and 12,950.

Strategy: Buy on declines with a stop-loss at 13,040 levels

Supports: 13,050 and 13,025

Resistances: 13,100 and 13,130

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on December 01, 2020
This article is closed for comments.
Please Email the Editor