Technical Analysis

Nifty call: Stay out of the market

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

The Nifty 50 futures contract is stuck in a sideways range between 10,400 and 10,500 for the fourth consecutive trading day.

Within this range the contract bounced from its intraday low of 10,441 and made a high 10,480. The contract has slightly come-off from the day's high now. The immediate outlook is not clear. A breakout on either side of 10,400 or 10,500 will determine the next trend.

Traders can stay out of the market until the range breakout gives a clear trade signal.

A strong break above 10,500 can bring fresh buyers into the market. Such a break can take the index futures higher to 10,545.

On the other hand, if the contract continues to trade below 10,500, it can dip to test the intermediate support level of 10,430. A break below it can take it to 10,400 - the lower end of the range.

A strong break below 10,400 can leave the contract under pressure. In such a scenario, a fall to 10,380 or even 10,345 is possible on the back of profit-booking.

Strategy: Stay out of the market

Supports: 10,430, 10,400

Resistances: 10,500, 10,545



Published on November 06, 2017

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