Technical Analysis

Nifty Call: Go short on a fall below 11,000

Yoganand D BL Research Bureau | Updated on September 16, 2019 Published on September 16, 2019

Nifty 50 September Futures (11,019)

Taking bearish cues from the Asian markets, the Sensex and the Nifty started the session in the negative territory with a gap-down opening and continued to trade in the red. The Hang Seng index is down by 1.2 per cent to 27,034 levels in today's session.

The Sensex and the Nifty failed to sustain the intra-day corrective rally and continue to trend down. Both the indices have declined about 0.6 per cent. The market breadth of the Nifty is biased towards declines. On the other hand, the India VIX has jumped 6.8 per cent to 15 levels. The Nifty mid and small cap indices have also witnessed selling pressure and fallen 0.14 per cent and 0.4 per cent respectively.

The Nifty September month contract commenced the session with a gap-down opening at 11,006. After marking an intra-day high at 11,078 the contact began to decline again. Key support at 11,000 is providing base for the contract. A strong fall below this level will strengthen the down-move and drag the contract lower to 10,975 and 10,950 levels. Subsequent supports are at 10,930 and 10,900 levels.

Traders should tread with caution as long as the contract trades above 11,000. Fresh short positions can be initiated with a fixed stop-loss on a decisive fall below 11,000 levels. On the upside, the contract can see a corrective rally on a decisive up move above 11,050 levels. In such a scenario, the contract can extend the corrective rally to 11,077 and then to 11,100 levels.

Strategy: Go short on a fall below 11,000 with a fixed stop-loss

Supports: 11,000 and 10,975

Resistances: 11,050 and 11,077

Published on September 16, 2019
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