Technical Analysis

Nifty Call: Sell in rallies with a stop-loss at 11,950 levels

Yoganand D November 22 | Updated on November 22, 2019

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Nifty 50 November Futures (11,906)

The Sensex and the Nifty began the session in negative territory and continued to decline after an initial up-move. Both the indices have fallen about 0.6 per cent each. The global markets are showing mixed cues. The market breadth of the Nifty index is biased towards declines. On the other hand, the India VIX has gained 3.5 per cent to 15.5 levels. The Nifty mid and small-cap indices are also witnessing selling pressure and have declined 0.5 per cent and 0.1 per cent. Among the sectoral indices, the Nifty IT index has slumped 2 per cent and the Nifty Bank has slumped 0.6 per cent. Nifty Media and Metal indices are the only gainers, advancing 1.9 per cent and 0.5 per cent respectively.

The November month Nifty futures contract started the session on flat note at 11,973. After marking an intra-day high at 11,977 the contract began the decline due to selling pressure and profit taking. The contract recorded an intra-day low at 11,884 and tests a key level at 11,900. Traders can make use of intra-day rallies to go short with a stop-loss at 11,950 levels. A decisive fall below 11,900 can test supports at 11,875 and 11,850 levels. Key resistances above 11,950 are at 11,974 and 12,000 levels.

Strategy: Sell in rallies with a stop-loss at 11,950 levels.

Supports: 11,875 and 11,850

Resistances: 11,950 and 11,974

Published on November 22, 2019

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