Technical Analysis

Nifty Call: Go short with stop-loss at 9,140

Yoganand D BL Research Bureau | Updated on May 15, 2020 Published on May 15, 2020

Nifty 50 May Futures (9,093)

Taking cues from the mixed Asian marekts, the domestic equity indices- the Sensex and the Nifty began the session marginally in negative territory. The Nikkei 225 has advanced 0.6 per cent to 20,037 while Hang Seng index is trading flat at 23,839 levels. The Sensex and the Nifty started to decline after an initial rally. Both the benchmark indices are trading in the negative territory and are down by about 0.7 per cent. The market breadth of the Nifty index is biased towards declines. The India VIX is in negative territory but trading flat at 38.1 levels.

The Nifty mid and small-cap indices have fallen 0.2 per cent and 0.3 per cent respectively. Barring the Nifty metal index which has gained 1.3 per cent, all the other secotral indices are trading in the negative territory. Top losers are the Nifty media and Nifty PVT Bank indices that have fallen 1.6 per cent each.

The Nifty May month contract commenced the session in positive territory, opening at 9,163 to its previous close of 9,143. After marking an intra-day high at 9,167 the contract began to decline. It has decisively breached a key supports at 9,140 and 9,100. It thereafter recorded an intra-day low at 9,051 levels. The near-term outlook remains bearish as long as the contract trades below 9,140 levels. Traders can make use of intra-day rallies to initiate fresh short positions with a fixed stop-loss at ₹9,140. A decisive fall below the immediate support level of 9,075 can pull the contract down to 9,050 and then to 9,020. Next key supports are at 9,000 and 8,970 levels. Key resistances above 9,140 are at 9,170 and 9,200.

Strategy: Make use of intra-day rallies to go short with a fixed stop-loss at 9,140

Supports: 9,070 and 9,050

Resistances: 9,140 and 9,170

Published on May 15, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.