Technical Analysis

Nifty call: Sell below 11,342 with stop-loss at 11,445

Akhil Nallamuthu Chennai | Updated on October 03, 2019 Published on October 03, 2019

Nifty 50 October futures (11,380)

Taking cues from the US market overnight, Asian stocks look weak in today’s session. The Nifty and the Sensex are also down marginally, trading lower by 0.15 and 0.3 per cent respectively. Notably, the Nikkei has fallen by 2 per cent today and the Hang Seng is down by a marginal 0.2 per cent.

The advances–declines ratio of the Nifty 50 index does not provide a definite clue on its future direction, as it currently stands at 24-26. India VIX, the volatility index, is considerably higher at 17.4 levels, up by 4 per cent in today’s session. Among the sectoral indices, the Nifty media and realty index are the top gainers, gaining 3.3 per cent and 2.8 per cent, respectively. The Nifty metal index, down by 1.8 per cent, is the top loser.

The October expiry futures contract of the Nifty 50 index closed below the range bottom of 11,485 on Tuesday. It is currently trading below 11,400, reinforcing the bearish bias. The contract will most probably depreciate from current levels.

Although the contract is trading just above the support level of 11,342 after trading below it briefly, the upside looks limited. Hence, from the trading perspective, one can sell the contract below 11,342, with a stop-loss at 11,445. Below 11,342, the price might tumble towards the support band ranging between 11,210 and 11,224

Strategy: Sell below 11,342 with stop-loss at 11,445

Supports: 11,342 and 11,224

Resistances: 11,445 and 11,485

Published on October 03, 2019
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