Technical Analysis

Nifty call: Buy on dips with deep stop-loss at 15,050 levels

Yoganand D | Updated on May 18, 2021

Nifty May month contract trends upwards

Nifty 50 May futures (15,140)

Taking cues from positive Asian markets, the domestic equity indices - the Sensex and the Nifty 50 - extended the recent rally. Both the indices started the session with a gap-up open. The Nikkei 225 has jumped 2 per cent to 28,406 and the Hang Seng index has climbed 1.3 per cent to 28,561 levels in today's session. The Sensex and the Nifty 50 have climbed 1.3 per cent each.

The market breadth of the Nifty 50 is biased towards advances. There is less volatility in the market as shown by the volatility index - India VIX – which has declined 2.6 per cent to 19 levels. Both Nifty mid and small-cap indices have gained 1.8 per cent and 1.7 per cent respectively. Apart from the Nifty FMCG and Pharma, which are hovering marginally in the red, other sectoral indices feature in the green. Top gainers are Nifty Auto and Media that have gained 2.8 per cent and 1.9 per cent correspondingly.

The Nifty May month contract began the session with a gap-up, opening at 15,080 levels, surpassing the key resistance at 15,000. It has recorded an intra-day low at 15,072 and the contract has trended upwards. As long as the contract trades above the key support level of 15,000, the near-term outlook remains positive for the session.

Traders can buy on dips with a stop-loss at 15,050 levels. A rally above 15,165 can take the contract higher to 15,180 and 15,200 levels. A further rally beyond 15,200 can take the contract higher to 15,220 and then to 15,250 levels. Key supports below 15,050 are placed at 15,000 and 14,950 levels.

Strategy: Buy on dips with a deep stop-loss at 15,050 levels

Supports: 15,100 and 15,050

Resistances: 15,165 and 14,180

Published on May 18, 2021

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

This article is closed for comments.
Please Email the Editor