Technical Analysis

Nifty Call: Go long above 12,725 levels with a fixed stop-loss

Yoganand D | Updated on November 13, 2020

Nifty 50 November Futures (12,711)

After a gap-down, the Sensex and the Nifty 50 recovered from their initial loss and entered the positive territory. After that, both the indices began to move sideways with a negative bias. Asian markets are marginally trading in the negative region, the Nikkei 225 is down by 0.5 per cent to 25,385, and Hang Seng index has slipped 0.45 per cent to 26,052 in today's session. Both the Sensex and the Nifty 50 are trading almost flat. The market breadth of the Nifty 50 is slightly biased towards advances. The Nifty mid and small-cap indices have climbed 0.5 per cent and 0.7 per cent respectively. On the other hand, the India VIX has declined 2.2 per cent to 20.1 levels. Selling interest is seen in the Nifty media and Nifty Bank that have fallen 1.6 per cent and 0.45 per cent respectively. The Nifty pharma is the top gainer that has climbed 0.66 per cent.

Following a gap-down open at 12,625 the contract declined and marked an intraday low at 12,612. However, the contract began to recover from the intraday low and recover the initial loss. It now tests resistance at 12,725 and a decisive rally above this level can take the contract higher to 12,750 and then to 12,775 levels. On the downside, a fall below the immediate support level of 12,660 can drag the contract down to 12,640 and then to 12,620. Next supports are at 12,600 and 12,570. Traders with a near-term view can go long on a strong rally above 12,725 with a stop-loss at 12,715.

Strategy: Go long above 12,725 levels with a fixed stop-loss.

Supports: 12,670 and 12,640

Resistances: 12,725 and 12,750

Published on November 13, 2020

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