Technical Analysis

Nifty Call: Sell with stop-loss at 12,065

Akhil Nallamuthu BL Research Bureau | Updated on December 03, 2019 Published on December 03, 2019

Nifty 50 December Futures (12,025)

Taking cues from the Asian market, the Indian benchmarks are on a decline today. Both the Nifty spot index and the Sensex spot index are down by 0.6 per cent. Nikkei has declined by 0.6 per cent whereas the Hang Seng is trading lower by 0.2 per cent today. Moreover, the US market traded negative with all major indices closing with loss yesterday.

The market breadth of the Nifty 50 index hints bearish bias as advance-decline ratio stands at 11-39. India VIX, the volatility index has spiked by a significant 10 per cent to 15.6 levels. Thus, market breadth and volatility index indicate clear bearish bias.

Except the Nifty realty index (up by 0.3 per cent) and the Nifty IT index (up by 0.2 per cent), all other sectoral indices have declined in today’s session. The top losers are the Nifty metal index and the Nifty PSU bank index, each losing 2.7 per cent today.

The December futures contract of the Nifty 50 index has been depreciating since the session open. The contract, currently trading at 12,025, has breached the support at 12,055 which increases the likelihood of further decline. Also, the overall market sentiment is bearish. Hence, traders are recommended to initiate short positions on rallies with stop-loss at 12,065.

Strategy: Sell on rallies with stop-loss at 12,065

Supports: 11,975 and 11,930

Resistances: 12,055 and 12,110

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Published on December 03, 2019
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