Technical Analysis

Nifty call: Desist from trading for the session

Yoganand D BL Research Bureau | Updated on January 09, 2018

Nifty 50 November Futures (10,345)

Taking bullish cues from the global markets, the Nifty and Sensex started the session with a gap-up open.

The Dow Jones increased 0.8 per cent to close at 23,458 and S&P 500 gained 0.82 per cent to close at 2,585 levels last session.

The Asian markets were also hovering in the positive territory. The Nifty futures contract started the session with a gap-up open at 10,344 and extended its rally to mark an intra-day high of 10,373 levels.

However, the contract began to experience selling interest and profit-taking at higher levels and it commenced to decline giving away some of its intra-day gains. The contract has recorded an intra-day low of 10,331 and was trading slightly above this level with a negative bias.

The premium between the contract and the underlying Nifty index has slightly narrowed in today's session. The contract has immediate supports at 10,330 and 10,300.

Only a strong plunge below the second base level will bring in further selling pressure and pull the contract down to 10,275 and 10,250 levels in the near term. On the upside, the key resistance at 10,350 can cap the rally. Subsequent resistances are placed at 10,375 and 10,400.

Traders with a short-term view should tread with a caution and consider going short only if the contract declines below 10,300 with a fixed stop-loss.

Strategy: Desist from trading for the session

Supports: 10,330 and 10,300

Resistances: 10,350 and 10,375

Published on November 17, 2017

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