Technical Analysis

Nifty Call: Sell on rallies with a fixed stop-loss at 8,350 levels

Yoganand D BL Research Bureau | Updated on April 01, 2020 Published on April 01, 2020

File photo

Nifty 50 April Futures (8,290)

The bearish global markets have led to a gap-down open in the domestic equity benchmark indices - the Sensex and the Nifty. Subsequently, the indices extended the decline and have plummeted more than 3 per cent so far. The Nikkei 225 index has slumped 4.5 per cent to 18,065 and Hang Seng index has declined 2.5 per cent to 23,012 in today's session. The market breadth of the Nifty index is biased towards declines. The India VIX has fallen 5.4 per cent to 60.9 levels. The Nifty mid and small-cap indices have also declined 2 per cent and 0.8 per cent respectively. All the sectoral indices are trading in the negative territory. The top losers are Nifty Bank and Nifty PVT Bank sector indices which has slumped 4 per cent each. The Nifty IT index has also declined 3.3 per cent.

The Nifty April month contract commenced the session with a gap-down open at 8,558. After marking an intra-day high at 8,569 the contract resumed the down-move and has breached the key support at 8,500 and 8,400 levels. The near-term stance remains bearish as long as the contract trades below 8,400 levels. Traders can sell on rallies while maintaining a fixed stop-loss at 8,350 levels. A decisive fall below the immediate support level of 8,280 can pull the contract down to 8,260 and then to 8,230 levels. Next key supports are at 8,200 and 8,100 levels. On the other hand, key resistances beyond 8,400 are at 8,450 and 8,500 levels. Immediate resistance is at 8,350.

Strategy: Sell on rallies with a fixed stop-loss at 8,350 levels

Supports: 8,280 and 8,260

Resistances: 8,350 and 8,400

Published on April 01, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.