Technical Analysis

Nifty Call: Consider long positions on a rally above 10,920

Yoganand D, BL Research Bureau | Updated on December 03, 2018

Nifty 50 December Futures (10,903)

After a positive start, taking cues from Asian stocks, Nifty and Sensex began to decline experiencing selling pressure on the back of underperformance in the Nifty pharma and auto sectors. Subsequently, the benchmark indices slipped into the negative territory.

Asian markets were in positive territory. Nikkei 225 gained 223 points or 1 per cent to 22,574 and Hang Seng index jumped 636 points or 2.4 per cent. The market breadth of the Nifty index is biased towards advances. On the other hand, the volatility index declined 3 per cent to 18.56 levels.

Nifty December month futures contract began the session with a gap-up open at 10,961 and marked an intra-day high of 10,974. But it started to decline due to selling pressure and profit-taking at higher levels. The contract breached key support at 10,900 and recorded an intra-day low of 10,871.

Traders should tread with caution. Fresh long positions can be initiated with a fixed stop-loss if the contract moves beyond 10,920 levels. Subsequent resistances are at 10,950 and 10,974. Key supports below 10,870 are placed at 10,850 and 10,825 levels.

Strategy: Consider long positions on a rally above 10,920

Supports: 10,870 and 10,850

Resistances: 10,920 and 10,950

Published on December 03, 2018

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