Technical Analysis

Nifty call: Sell below 11,900 with stop-loss at 11,950

Akhil Nallamuthu | Updated on November 06, 2019 Published on November 06, 2019

Nifty 50 November Futures (11,903)

The Nifty saw a bearish close yesterday and the negative bias seems to have carried over into today’s session as well. The index futures is currently hovering around an important support of 11,900 and a decisive break below it will turn the near-term trend negative. However, indices across Asia do not suggest a directional trend.

With 30 of the 50 stocks of the Nifty 50 index in a decline, the market breadth favours bears. However, volatility seems to be subdued as the volatility index, India VIX, is marginally down at 15.86 levels. Among the sectoral indices, the Nifty realty index is the top performer, with a gain of a little over 2 per cent, whereas the Nifty PSU bank index is the top loser, down by 1.4 per cent today.

The November futures of the Nifty 50 index opened lower at 11,941 against the previous session’s close of 11,956. Currently trading at 11,904, it is testing a key support and price action looks bearish. A break below the key support will attract fresh selling, dragging the contract to lower levels. Traders can, therefore, sell futures below 11,900, with stop-loss at 11,950.

 

Strategy: Sell below 11,900 with stop-loss at 11,950

Supports: 11,865 and 11,832

Resistances: 11,943 and 11,966

 

Published on November 06, 2019
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