Technical Analysis

Nifty Call: Buy on dips with fixed stop-loss at 13,620 levels

Yoganand D | Updated on December 16, 2020

Nifty 50 December Futures (13,660)

The Sensex and the Nifty 50 commenced the session with a gap-up open, taking positive cues from the global markets and the local indices continue to move range-bound in the positive territory. The Nikkei 225 has climbed 0.26 per cent to 26,757 and Hang Seng index has advanced 0.8 per cent to 26,424 levels in today's session. The Sensex and the Nifty 50 have climbed 0.6 per cent each so far. The market breadth of the Nifty 50 is biased towards advances. The India VIX- the volatility index is marginally down by 0.4 per cent to 19.26 levels. There is buying interest seen in the Nifty mid and small-cap indices as these indices have jumped 0.9 per cent and 1.2 per cent respectively. Baring Nifty PSU Bank and media all the other sectoral indices are hovering in the positive territory. The Nifty realty is the top gainer that has jumped almost 5 per cent, followed by Nifty metal index rally of 1.34 per cent.

The Nifty 50 December month contract started the sessions with a gap-up open at 13,652 and continues to trade in the positive territory. The intraday low and high are marked at 13,619 and 13,673 respectively. The near-term outlook stays positive as long as the contract trades above 13,620 levels. Traders can make use of dips to buy with stop-loss at 13,620. A decisive rally above the immediate resistance level of 13,675 can take the contract higher to 13,700 and then to 13,730 levels. Key supports below 13,620 are at 12,600 and 13,575 and 13,540 levels.

Strategy: Buy on dips with a fixed stop-loss at 13,620 levels

Supports: 13,620 and 13,600

Resistances: 13,675 and 13,700

BL Research Bureau

Published on December 16, 2020

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