Technical Analysis

Nifty Call: Buy with stop-loss at 8,935

Yoganand D BL Research Bureau | Updated on May 19, 2020 Published on May 19, 2020

Nifty 50 May Futures (8,977)

Tracking the bullish global markets, Sensex and Nifty began the session with a gap-up open and continued to trade in the positive territory. The US stock indices- Dow Jones and S&P 500 jumped 3.8 per cent and 3.1 per cent respectively, in the last session. The Nikkei 225 index had jumped 1.5 per cent to 20,433 and Hang Seng index has gained 2 per cent to 24,442 levels in today's session. Sensex and Nifty have advanced 1.9 per cent and 2 per cent, respectively so far. The market breadth of the Nifty index is biased towards advances. On the other hand, the India VIX has slumped 3.7 per cent to 39.3 levels. The Nifty mid-cap index has surged 1.7 per cent and Small-cap index has advanced 1 per cent.

Nifty May month contract commenced the session with a gap-up open at 8,971. After an initial decline, the contract recorded an intra-day low at 8,860 and resumed its up-move. The contract has decisively breached a key resistance at 8,900 and marked an intra-day high at 9,034 levels. It currently tests key resistance at 9,000. Trader can buy the contract in declines with a stop-loss at 8,935. A decisive break above 9,000 can take the contract higher to 9,035 and then to 9,050 levels. Subsequent resistances are at 9,075 and 9,100 levels. Immediate support is at 8,950 levels. Conversely, if the contract slumps below the crucial support level of 8,900 can pull the contract down to 8,860 and then to 8,830 levels. In that case desist taking fresh long positions.

Strategy: Make use of intra-day dips to buy with a fixed stop-loss at 8,935 levels.

Supports: 8950 and 8,900

Resistances: 9,000 and 9,035

Published on May 19, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.