Nifty Call: Go short with a stop-loss at 10,565

Gurumurthy K | Updated on: Apr 20, 2018

Nifty 50 April Futures (10,547)

The Nifty 50 futures contract opened with a gap-down and fell to a low of 10,531. The contract has bounced back slightly from this low. The broader 10,500-10,600 sideways range remains intact. This contract has been stuck inside this range over the last three trading days.

Within this range, a key intermediate resistance is at 10,560 which may cap the upside during the day. A pull-back from the 10,550-10,560 region can drag the index futures lower to 10,520 or 10,500 in the coming sessions.

High risk appetite traders can go short at current levels. Stop-loss can be placed at 10,565 for the target of 10,505. Revise the stop-loss lower to 10,535 as soon as the contract moves down to 10,525.

On the other hand, the contract may get a breather if it manages to breach 10,560 decisively. Such a break can take the contract higher to 10,600 levels again.

Strategy :  Go short with a stop-loss at 10,565

Supports: 10,520, 10,500

Resistances: 10,560, 10,600

Published on April 20, 2018
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