Technical Analysis

Nifty call: Stay out of the market

Gurumurthy K BL Research Bureau | Updated on January 09, 2018

Nifty 50 Nov Futures (10,378)

The Nifty 50 futures contract has opened the week on a positive note. The contract opened with a gap-up and rose to a high of 10,399. The contract has come-off from this high and is currently trading at 10,378.

Though the index futures is managing to sustain higher, the price action on the chart suggests that it lacks strength. Significant support is in the 10,350-10,345 region.

The contract has to sustain above this support in order to extend its rally in the coming sessions. As long as the contract stays above 10,345, there is a strong likelihood of it breaking above 10,400 in the near-term. Such a break will pave way for the next target of 10,445.

But if the Nifty 50 futures contract breaks below 10,345, it can fall to 10,330 or 10,320 initially. Further break below 10,320 will then increase the possibility of the fall extending to 10,300 or even 10,265 thereafter.

Traders can stay out of the market for a few sessions to get a clear cue on the next trend.

Strategy: Stay out of the market

Supports: 10,345, 10,320

Resistances: 10,400, 10,445

Published on October 30, 2017

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