Technical Analysis

Nifty call: Go long on dips at 10,460 with stop-loss at 10,430

Gurumurthy K | Updated on February 23, 2018 Published on February 23, 2018

Nifty 50 March Futures (10,490)

Three days of narrow, range-bound movement below 10,400 has come to an end. The Nifty 50 futures contract has risen sharply, breaking above the key resistance level of 10,420, which was capping the upside over the last three days. This bullish breakout has turned the short-term outlook bullish for the index futures.

Strong support is in the 10,450-10,440 region, which is likely to limit the downside. Dips to this support zone can see fresh buying interest coming into the market. Immediate resistance is at 10,510, which if it holds, can trigger an intermediate dip to 10,450. However, an eventual break above 10,510 will pave the way for the next target of 10,535. Such a break will also increase the likelihood of the contract targeting 10,600 levels in the coming days.

Short-term traders can make use of dips to go long at 10,460 and at 10,450. Stop-loss can be placed at 10,430, for the target of 10,520.

Strategy: Go long on dips at 10,460 and 10,450 with stop-loss at 10,430

Supports: 10,440, 10,400

Resistances: 10,510, 10,535

Published on February 23, 2018
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