Technical Analysis

Nifty Call: Make use of dips to buy the contract with fixed stop-loss

Yoganand D | Updated on October 29, 2019 Published on October 29, 2019

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Nifty 50 October Futures (11,790)

Taking cues from the positive global markets, and also after witnessing domestic buying interest in large- and mid-cap stocks, the benchmark indices, the Nifty and the Sensex, have gained more than 1 per cent in today's session. The Dow Jones and the S&P 500 index advanced 0.5 per cent each in last session. The Asian markets are trading mixed, the Nikkei 225 has gained 0.5 per cent to 22,974 levels while Hang Seng index has dropped 0.4 per cent to 26,776 levels.

Both the Sensex and the Nifty began the session with a marginal gap-up open and continued to trend upwards steadily. The Nifty Auto and Metal indices have jumped more than 3.5 per cent each in today's session on the back of buying interest. The Nifty mid-cap index has surged 1.4 and Nifty small-cap index has rallied 0.76 per cent.

The Nifty October month contract began the session with a gap-up open at 11,670. After marking an intra-day low at 11,637 the contract continued to trend upwards breaking a key resistance at 11,700 levels. This breakthrough has strengthened the bullish momentum. However, the contract faces next key resistance at 11,800. A strong break above this level can pave way for an up-move to 11,825 and 11,850 levels. On the other hand, key supports are at 11,770 and 11,750 levels. Only a decisive fall below 11,700 will alter the near-term positive outlook. Traders can make use of intra-day dips to buy the contract with a fixed stop-loss.

Strategy: Make use of dips to buy the contract with fixed stop-loss

Supports: 11,770 and 11,750

Resistances: 11,800 and 11,825

Published on October 29, 2019
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