Technical Analysis

Nifty call: Sell on rallies with stop-loss at 14,150 levels

Yoganand D | Updated on January 27, 2021

Nifty 50 January futures (14,086)

The Sensex and Nifty 50 commenced the session with a gap-down open, extending Monday's fall and continue to trend downwards on the back of selling interest. The US markets were flat in the last session and the Asian markets are mixed in today's session.

The Nikkei 225 is up by 0.3 per cent at 28,635, while the Hang Seng index is flat at 29,398 levels. The market breadth of the Nifty 50 is biased towards declines. The India VIX has climbed 0.9 per cent to 23.4 levels, implying an increase in volatility. The Nifty mid-cap has slumped 0.8 per cent, whereas the Nifty smallcap has advanced 0.3 per cent. The Nifty FMCG and media are the two sectoral indices trading in positive territory, gaining 0.35 per cent each. Top sectoral losers are Nifty PVT Bank and Bank Nifty that have tumbled 1.7 per cent and 1.6 per cent respectively.

The Nifty January month contract started the session with a gap down open at 14,199. After marking an intra-day high at 14,208 levels, the contract continued to trend downwards witnessing selling interest, and it has slumped below 14,100 levels. The contract has recorded an intra-day low at 14,076. The near-term stance for the contract is bearish. Traders can sell on rallies, while maintaining a fixed stop-loss at 14,150 levels. The contract can test support at 14,075 and a fall below this base can pull the contract down to 14,050 and then to 14,020 levels. Key support below this level is at 14,000. Resistances beyond 14,150 are placed at 14,180 and 14,210.

Strategy: Sell on rallies with a stop-loss at 14,150 levels

Supports: 14,075 and 14,500

Resistances: 14,150 and 14,180

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Published on January 27, 2021
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