Technical Analysis

Nifty call: Sell the contract in rallies with a stop-loss at 9,835

Yoganand D BL Research Bureau | Updated on January 09, 2018 Published on August 21, 2017


Nifty 50 August Futures (9,813)

The Nifty futures contract started the session on a positive note at 9,869, taking cues from mixed Asian markets. The Hang Seng Index was up 0.5 per cent at 27,173, while Nikkei 225 was down 0.4 per cent at 19,393.

The Nifty futures contract extended its up move, encountered resistance at 9,884 levels and began to decline. Failing to sustain the bullish momentum, the contract changed direction. It has decisively breached its immediate support at 9,850 and has marked an intra-day low of 9,809 levels.

The market breadth also turned negative from positive as the contract started to decline. The near-term outlook is bearish for the contract.

Traders with a short-term perspective can make use of intra-day rallies to initiate fresh short positions while maintaining a fixed stop-loss at 9,835 levels.

The contract can test the immediate support at 9,820 once again. Further declines below 9,810 can make the contract test the support at 9,800. Next key supports below 9,800 are at 9,775 and 9,750 levels. On the hand, significant resistances are at 9,850; 9,885 and 9,900 levels.

Strategy: Sell the contract in rallies with a stop-loss at 9,835

Supports: 9,800 and 9,775

Resistances: 9,830 and 9,850

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Published on August 21, 2017
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