Technical Analysis

Nifty Call: Sell with a stop-loss at 12,130 levels

Yoganand D BL Research Bureau | Updated on November 29, 2019 Published on November 29, 2019

Nifty 50 December Futures (12,086)

Taking bearish cues from the Asian markets, the Sensex and the Nifty started the session on a weak note and continued to decline. The Nikkei 225 has fallen 0.5 per cent to 23,293 levels and Hang Seng index has tumbled 1.85 per cent to 26,397 levels. In today's session, both the Sensex and the Nifty have fallen over 0.9 per cent and 0.86 per cent respectively. The market breadth of the Nifty is biased towards declines.

The India VIX is marginally hovering in the positive territory at around 14.03. The Nifty small cap index is resilient and has surged 0.79 per cent and Nifty mid-cap index is slightly up by 0.12 per cent. The Nifty metal index is the biggest loser declining 1.2 per cent. Nifty auto, FMCG and IT sectoral indices have slumped 1 per cent each.

The Nifty December month contract commenced the day with a gap-down open at 12,174 and continued to trend downwards witnessing selling pressure as well as profit booking at higher levels. The contract breached a key support at 12,100 and marked an intra-day low at 12,051 levels. The near-term weakness will continued as long as the contract trades below 12,125 levels.

Traders can make use of intra-day rallies to go short with a stop-loss at 12,130. The contract can retest support at 12,050. A strong fall below this base can drag the contract down 12,025 and then to 12,000 levels. Key resistances beyond 12,125 are at 12,150 and 12,175.

Strategy: Sell in rallies with a stop-loss at 12,130 levels.

Supports: 12,050 and 12,025

Resistances: 12,100 and 12,125

Published on November 29, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.