Technical Analysis

Nifty Call: Outlook stays positive above 11,970; buy with a fixed stop-loss

Yoganand D BL Research Bureau | Updated on December 12, 2019 Published on December 12, 2019

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Nifty 50 December Futures (11,990)

Following an initial rally, the Sensex and the Nifty have marginally eased their initial gains and are trading sideways. The Asian markets are positive, Hang Seng index has jumped 1.4 per cent to 27,007 and Nikkei 225 is hovering at 23,424 with a marginal gain of 0.14 per cent in today's session. Both the Sensex and the Nifty have climbed 0.3 per cent each. The market breadth of the Nifty is biased towards advances. The India VIX is trading flat at 13.37 levels. The Nifty mid and small-cap indices have surged 0.5 per cent and 0.2 per cent respectively. The Nifty metal has jumped 2 per cent followed by Nifty auto index which has gained 1.25 per cent on the back of buying interest. However, selling pressure is seen in the Nifty IT and media sectoral indices which are slightly in red.

The December month contract started the session with a gap-up open at 11,998. After marking an intra-day high at 12,013 the contract witnessed correction and has recorded an intra-day low at 11,966 levels. The near-term view stays positive as long as the contract trades above a key support level of 11,970. Traders can buy with a fixed stop-loss. A strong rally above the immediate resistance level of 12,010 can take the contract higher to 12,030 and then to 12,050 levels. On the other hand, a key supports below 11,970 are placed at 11,950 and 11,920.

Strategy: Outlook stays positive above 11,970. Buy with a fixed stop-loss

Supports: 11,970 and 11,950

Resistances: 12,010 and 12,030

Published on December 12, 2019
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