Technical Analysis

Nifty call: Nifty 50 January Futures (12,048)

Yoganand D BL Research Bureau | Updated on January 08, 2020 Published on January 08, 2020

Nifty 50 January Futures (12,048)

Taking bearish cues from the weak Asian markets, the Sensex and the Nifty started the session with a gap-down open and continued to trend downwards following an initial recovery. The Nikkei 225 is down by 1.5 per cent to 23,204 and Hang Seng index has slipped 0.9 per cent to 28,064 levels in today's session. Both the Sensex and the Nifty have fallen 0.3 per cent and 0.4 per cent respectively. The market breadth of the Nifty is biased towards declines. On the other hand, the India VIX has jumped 8.8 per cent to 15.88 levels. The Nifty mid and small cap indices have slipped 0.3 per cent and 0.6 per cent correspondingly. Baring Nifty IT index which is hovering in green, other sectoral indices are hovering in the negative territory. The Nifty PSU bank index has slumped 1.3 per cent and Nifty metal index has slipped 1.2 per cent.

The Nifty January month contract began the session with a gap-down open at 11,996. After marking an intra-day low at 11,976 the contract recovered and recorded an intra-day high at 12,090 levels. The contract is down by 0.5 per cent. As long as the contract trades below 12,100 the near-term outlook will remain bearish. Traders can make use of intra-day rallies to go short with a stop-loss at 12,275 levels. The contract can decline to 12,025 and 12,000. A fall below 12,000 can drag the contract down to 11,970 levels. Key resistance above 12,100 are at 12,130 and 12,150 levels.

Strategy: Make use of intra-day rallies to go short with a stop-loss at 12,075 levels

Supports: 12,025 and 12,000

Resistances: 12,075 and 12,100

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Published on January 08, 2020
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