Technical Analysis

Nifty Call: Sell with a stop-loss at 10,955 levels

Yoganand D BL Research Bureau | Updated on September 17, 2019 Published on September 17, 2019

Nifty 50 September Futures (10,928)

Taking cues from the negative global markets, the Sensex and the Nifty began the session in red with a gap-down open. Subsequently, the benchmark indices continued to trend downwards and have declined about 0.8 per cent.

The Dow Jones and S&P 500 index had fallen 0.5 per cent and 0.3 per cent respectively in last session. While the Nikkei 225 is hovering flat at 22,000 but the Hang Seng index has slumped 1.46 per cent to 26,729 in today's session. The market breadth of the Nifty is biased towards declines. However, the India VIX, volatility index has gained 3.6 per cent to 15.5 levels. Most of the sectoral indices are hovering in the negative territory. The Nifty Auto index has fallen 1.45 per cent and is the biggest loser.

The Nifty September futures contract began the session in negative territory, with a gap-down open. After marking an intra-day high at 11,005 the contract started to decline witnessing selling pressure. The contract has recorded an intra-day low at 10,912.

Traders can make use of intra-day rallies to go short while maintaining a fixed stop-loss at 10,955. The contract can test support at 10,900. An emphatic fall below this level can drag it lower to 10,870 and 10,850 levels. Key resistances above 10,950 are at 10,975 and 11,000. A strong rally above 10,975 can witness a corrective up-move extending higher to 11,000 and then to 11,025 levels

Strategy: Sell on intra-day rallies with a stop-loss at 10,955 levels

Supports: 10,900 and 10,870

Resistances: 10,950 and 10,975

Published on September 17, 2019
This article is closed for comments.
Please Email the Editor