Technical Analysis

Nifty call: Sell on rallies with stop loss above 10,800

| Updated on September 19, 2019 Published on September 19, 2019

Nifty 50 September futures (10,770)

The Nifty index opened on a weak note on Thursday. It has moved below an important level of 10,800, and is currently trading lower by 0.8 per cent. Likewise, the Sensex is also trading lower by 0.8 per cent. The Asian markets offered mixed signals, with the Nikkei gaining 0.5 per cent, but the Hang Seng dropping by 1.1 per cent.

The market breadth of Nifty indicates considerable weakness, as the advance-decline ratio in today’s session is at 7-42. India VIX – the volatility index -- is at 15.5 levels, up by one per cent. All the sectoral indices are in the red; the top loser is the Nifty media index, which is down by 2.3 per cent, while all the other indices are down by over 1 per cent.

The September month futures contract of the Nifty 50 index opened the session lower at 10,831 against the previous day’s close of 10,855. The contract tumbled and is currently trading at 10,765, below the psychological level of 10,800.

Recovery will face a hurdle at the immediate level of 10,787, and the next support comes in at 10,720. Hence, traders can approach trade with a bearish bias and sell on rallies with a stop loss above 10,800.

Strategy: Sell on rallies with stop loss above 10,800

Supports: 10,720 and 10,686

Resistances: 10,787 and 10,810

Published on September 19, 2019
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