Technical Analysis

Nifty Call: Sell on rallies with a stop-loss at 12,270

Yoganand D | Updated on December 23, 2019 Published on December 23, 2019

Nifty 50 December Futures (12,245)

BL Research Bureau

After a negative start, the Sensex and the Nifty recovered and began to move sideways but with a negative bias. The Asian markets are flat, Nikkei 225 is hovering at 23,821, and Hang Seng index is trading at 27,853 levels. Both the Sensex and the Nifty have slightly declined by 0.23 per cent and 0.18 per cent respectively. However, the market breadth of the Nifty is biased towards advances. The Nifty mid and small-cap indices are also flat. Selling interest is seen in the Nifty PSU bank index, which is down almost 1 per cent. While the buying interest is witnessed in the Nifty auto, metal and media which are hovering in the green with about 0.4-0.7 gains.

The Nifty December month contract started the session with a gap-down open at 12,265. After marking intra-day high at 12,291, the contract started to decline witnessing the selling pressure at higher levels. The near-term view is bearish for the session. Traders can make use of intra-day rallies to initiate fresh short positions with a stop-loss at 12,270 levels. A fall below the next support level of 12,230 can drag the contract down to 12,210 and 12,200 levels. Key resistances above 12,270 are at 12,290 and 12,300 levels.

Strategy: Selling pressure is seen at higher levels. Sell on rallies with a stop-loss at 12,270.

Supports: 12,230 and 12,210

Resistances: 12,270 and 12,290

Published on December 23, 2019
This article is closed for comments.
Please Email the Editor