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

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