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

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