Technical Analysis

Nifty Call: Go long only on a decisive break above 12,130

Akhil Nallamuthu BL Research Bureau | Updated on November 27, 2019 Published on November 27, 2019

Nifty 50 November Futures (12,085)

Following the breakout, the Indian benchmark indices, the Nifty and the Sensex have been trading flat. The Nifty spot is up by a quarter percent whereas the Sensex spot is marginally up by 0.15 per cent. The Asian market is giving mixed cues as Nikkei is up by 0.3 per cent but Hang Seng is trading flat. Thus the equity market bulls seems to have paused for now.

The market breadth of the Nifty 50 index is hinting a bullish bias as 37 out of the 50 stocks are in the green today. India VIX, the volatility index, is down by 1.2 per cent to 14.65 levels. Barring the Nifty realty index, all other sectoral indices have gained in today’s session, indicating a broader bullish bias. The Nifty auto index is the top gainer, up by 1.1 per cent.

The November futures contract of the Nifty 50 index opened the session at 12,098 versus its previous close of 12,075. After an initial uptick, the contract has been gradually declining and is currently trading at 12,085. Until it trades above 12,050, the contract can be approached with a bullish bias. However, for the bulls to regain traction, it must break above 12,130. Hence, from intraday perspective, traders are advised to go long only on a  decisive break above 12,130. In such case, place stop-loss at 12,080.

Strategy: Go long only on a  decisive break above 12,130

Supports: 12,050 and 12,000

Resistances: 12,130 and 12,162

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Published on November 27, 2019
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