Technical Analysis

Nifty call: Go short with a stop-loss at 10,375

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

Nifty 50 Nov Futures (10,345)

The Nifty 50 futures contract is managing to sustain above 10,300, but is not gaining strength to move higher. The resistance in the 10,350-10,360 zone is capping the upside.

As long as the contract trades below 10,360, the possibility is high of it breaking below 10,300 in the coming sessions. Such a break can take the contract lower to 10,275 or 10,260 initially. Further break below 10,260 will increase the likelihood of the fall extending to 10,230.

Traders can go short at current levels and on rallies at 10,360. Stop-loss can be placed at 10,375 for the target of 10,280. Revise the stop-loss lower to 10,330 as soon as the contract moves down to 10,310.

The downside pressure will ease only if the contract breaks above 10,360 decisively. Such a break can then target 10,400 and 10,415.

Strategy: Go short with a stop-loss at 10,375

Supports: 10,300, 10,275

Resistances: 10,360, 10,400

Published on November 10, 2017

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