Technical Analysis

Nifty Call: Sell in rallies with a fixed stop-loss at 10,830 levels

Yoganand D, BL Research Bureau | Updated on May 14, 2018 Published on May 14, 2018

Nifty 50 May Futures (10,814)

Taking positive cues from the Asian markets, the Nifty and the Sensex started the day in the green. The Nikkei 225 added 107 points or 0.47 per cent to 22,865 and the Hang Seng index gained 358 points or 1.15 per cent to 31,480.

After an initial rally, both the Nifty and the Sensex began to experience selling pressure and slipped into the negative territory. The Nifty Small and Mid-cap indices are witnessing selling pressure and have plunged about 0.8 and 0.7 per cent, respectively.

On the other hand, the India VIX index, which measures the volatility, is up 3.14 per cent to 14.4 levels.

The Nifty futures contract started in the negative territory at 10,810 and moved higher to record an intra-day high of 10,848. However, after witnessing selling pressure, the contract started to decline from this high. It breached an immediate support at 10,825 and recorded an intra-day low of 10,796.

Traders with a near-term view can sell the contract in rallies with a fixed stop-loss at 10,830 levels. The contract can breach the immediate support at 10,800 and test next support at 10,775.

Further decline below 10,775 can drag the contract down to 10,750 levels. Subsequent supports are placed at 10,730 and 10,710 levels. On the other hand, key resistances are at 10,825 and 10,850 levels.

A decisive breach above 10,825 can take the contract higher to 10,850.To strengthen the up move, the contract needs to conclusive rally above 10,850 levels. Next resistances are at 10,875 and 10,900 levels.

 

Strategy: Sell in rallies with a fixed stop-loss at 10,830 levels

Supports: 10,800 and 10,775

Resistances: 10,825 and 10,850

 

 

 

Yoganand D

 

BL Research Bureau

 

 

Published on May 14, 2018

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