Technical Analysis

Nifty Call: Sell on rallies with stop-loss at 11,860 levels

Yoganand D BL Research Bureau | Updated on October 15, 2020 Published on October 15, 2020

Nifty 50 October Futures (11,800)

The Sensex and the Nifty 50 started the session on flat note and declined thereafter. The US markets ended last session in negative territory, Dow Jones declined 0.6 per cent to 28,514 and S&P 500 had fallen 0.6 per cent to 3,488 levels. The Nikkei 225 index has slipped 0.5 per cent to 23,507 and Hang Seng index has slumped 1.4 per cent to 24,317 levels in today's session. Both the Sensex and the Nifty 50 continued to trend downwards and have declined 0.7 per cent and 0.6 per cent respectively so far. The market breadth of the Nifty 50 index is inclined to downside. On the other hand, the India VIX has jumped almost 5 per cent to 21.2 levels. Both the Nifty mid and small-cap indices are trading in the negative territory. The Nifty metal is the top gainer and has gained 1.1 per cent. Selling interest is seen in the Nifty IT index which has tumbled 2.8 per cent.

The Nifty 50 October month contract started the session on a flat note, opening at 11,983. The contract registered an intra-day high at 11,999 and continued to decline witnessing selling interest at higher levels. It breached a key support at 11,900 and has been declining. The near-term stance remains negative as long as the contract trades below 11,900 levels. Traders can make use of intra-day rallies to go short with a fixed stop-loss at 11,860 levels. A decisive fall below 11,800 base can pull the contract down to 11,770 and then to 11,750 levels. Key resistances above 11,860 are at 11,900 and 11,950.

Strategy: Sell on rallies with a stop-loss maintained at 11,860 levels

Supports: 11,775 and 11,750

Resistances: 11,860 and 11,900

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Published on October 15, 2020
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