Technical Analysis

Nifty call: Go short on rallies at 10,415 with a stop-loss at 10,440

Gurumurthy K BL Research Bureau | Updated on January 09, 2018

Nifty 50 Nov Futures (10,380)

Though the Nifty 50 futures contract opened with a gap-up today, it is not gaining strength to breach 10,400. The contract tested this psychological resistance and is stuck in a narrow range between 10,375 and 10,400.

The bias is bearish on the chart. The resistance in the 10,420-10,430 region can cap the upside even if the contract manages to break above 10,400 during the day.

A fall to 10,350 and 10,330 is possible in the coming sessions. Further break below 10,330 can drag the index futures lower to 10,300 thereafter.

Short-term traders can make use of rallies to go short at 10,415. Stop-loss can be placed at 10,440 for the target of 10,360. Revise the stop-loss to 10,395 as soon as the contract moves down to 10,380.

The downside pressure will ease only if the contract breaks above 10,430 decisively. Such a break will pave way for a relief rally to 10,450 or 10,480 thereafter.

Strategy: Go short on rallies at 10,415 with a stop-loss at 10,440

Supports: 10,350, 10,330

Resistances: 10,400, 10,430

Published on November 09, 2017

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