Technical Analysis

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

Yoganand D BL Research Bureau | Updated on May 20, 2020

Nifty 50 May Futures (8,971)

In the midst of mixed Asian markets, Sensex and Nifty started the session in a positive territory. The Nikkei 225 has climbed 0.8 per cent to 20,595 and Hang Seng index is hovering flat at 24,363 levels in today's session. Both Sensex and Nifty have advanced 0.7 per cent each. The market breadth of the Nifty index is biased towards advances. The volatility index - India VIX has slumped 6.5 per cent to 36.8 levels. The Nifty mid-cap has advanced 0.8 per cent and small-cap index has increased 0.6 per cent. Among the sectoral indices, Nifty IT index and Nifty PSU Bank index are marginally trading in the red. Top gainers are Nifty Pharma and realty indices which have advanced 1.5 per cent each.

The Nifty May month contract commenced the session with a gap-up open at 8,903. After an initial decline to the intra-day low of 8,879 the contract resumed the up-move, decisively breaking above 8,900 levels. The contract recorded an intra-day high at 9,007 levels. Immediate support is at 8,940 levels. Traders can buy the contract in declines with a fixed stop-loss at 8,935 levels. An emphatic break above 9,000 can take the contract higher to 9,025 and then 9,050 levels. Key supports below 8,940 are at 8,900 and 8,880.

Strategy: Buy in declines with a fixed stop-loss at 8,935 levels.

Supports: 8950 and 8,900

Resistances: 9,000 and 9,035


Published on May 20, 2020

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