Technical Analysis

Nifty call: Sell on rallies with stop-loss at 11,560

| Updated on September 30, 2019 Published on September 30, 2019

Nifty 50 October futures (11,455)

The Nifty 50 index opened lower today and continues to witness selling pressure. It is currently trading down by 1 per cent. The Sensex, too, is trading on a weak note, having declined 0.9 per cent so far.

The Asian markets are giving out mixed cues, with the Nikkei losing 0.5 per cent, and the Hang Seng up by 1.7 per cent.

The Nifty 50 is trading on a bearish note, with the advances-declines ratio currently at 11-39. Volatility is up by 2 per cent – the India VIX is at 16.4 levels. Besides the Nifty IT index, all the other sectoral indices are in the red.

The Nifty PSU bank index, down nearly 4 per cent, is the top loser, followed by the Nifty Media index, which is trading lower by 3.2 per cent.

The October expiry futures contract of the Nifty 50 index opened lower at 11,549, against the previous close of 11,579. The contract, which is witnessing selling pressure, registered an intra-day low of 11,445. It has broken below the critical level of 11,500, indicating further weakness. Hence, traders with an intra-day perspective, can sell on intra-day rallies, with stop-loss at 11,560 levels.

Strategy: Sell on intra-day rallies, with stop-loss at 11,560

Supports: 11,440 and 11,400

Resistances: 11,500 and 11,560

Published on September 30, 2019
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