Technical Analysis

Nifty call: Sell the contract in rallies with a fixed stop-loss at 9,850 levels

Yoganand D BL Research Bureau | Updated on January 09, 2018 Published on August 18, 2017

nifty

Nifty 50 August Futures (9,823)

Taking cues from the negative US markets -- the Dow had slumped 1.2 per cent and the S&P 500 index had declined 1.5 per cent on Thursday -- the domestic indices started the session in the red, with a gap-down open.

The Nikkei 225 was down 1.2 per cent and Hang Seng index slipped 0.8 per cent in today's trading. Both the Sensex and Nifty started the session in the negative territory with a marginal gap-down open and continues to trade in the negative territory.

Selling pressure in the indices have intensified as the index heavyweight, Infosys, nosedived more than 9 per cent as Vishal Sikka, resigned as CEO and MD.

Nifty futures contract started the session with a gap-down open at 9,869 levels. Witnessing selling pressure, the contract extended its decline by breaching the immediate support of 9,850. The contract marked an intra-day low of 9,815 and is currently in a relief rally.

Traders with a short-term view can consider selling the contract in rallies while maintaining a fixed stop-loss at 9,850 levels. The contract can resume its down move and test support at 9,800 levels. Further decline below 9,800 can pull the contract down to 9,775 and 9,750 levels in the near term.

Key resistances above 9,850 are at 9,880 and 9,910 levels. Strong rally beyond 9,910 is required to bring back the bullish momentum. Resistances above 9,910 are at 9,930 and 9,950 levels.

Strategy: Sell the contract in rallies with a fixed stop-loss at 9,850 levels.

Supports: 9,800 and 9,775

Resistances: 9,850 and 9,880



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Published on August 18, 2017
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