Technical Analysis

Nifty Call: Buy with stop-loss at 12,275 levels

Yoganand D, BL Research Bureau | Updated on January 02, 2020 Published on January 02, 2020

Nifty 50 January Futures (12,324)

The Nifty and the Sensex started the session with a gap-up opening, following positive trends in other Asian markets. The Hang Seng index has gained 1.1 per cent to 28,501 and CSI 300 index has advanced 1.4 per cent to 4,153 levels in today's session. Both the Nifty and the Sensex have maintained the positive momentum and continued to trend upwards, gaining 0.6 per cent each. The market breadth of the Nifty is biased towards advances. The India VIX has slipped 0.8 per cent to 11.49 levels. The Nifty mid and small-cap indices are witnessing buying interest and have advanced 0.9 per cent and 1.2 per cent respectively. Among the sectoral indices, the Nifty metal index tops the charts by gaining 2 per cent followed by Nifty PSU Bank index which has gained 1.2 per cent. Nifty media index is the only index hovering in the red, declining by 0.3 per cent.

The Nifty January futures contract commenced the session with a minor gap-up opening at 12,252. After marking an intra-day low at 12,245 the contract continued to trend upwards and has breached the vital resistance at 12,300 levels. The near-term outlook will remain positive as long as the contract trades above 12,275 levels. Traders can make use of intra-day dips to buy while maintaining a stop-loss at 12,275 levels. A strong rally above 12,325 can take the contract higher to 12,350 and 12,370 levels. Key supports below 12,275 are at 12,250 and 12,225 levels.

Strategy: Buy in dips with a fixed stop-loss at 12,275 levels

Supports: 12,375 and 12,250

Resistances: 12,325 and 12,350

Published on January 02, 2020
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