Technical Analysis

Nifty Call: Traders can sell in rallies with a stop-loss at 10,860

Yoganand D, BL Research Bureau | Updated on December 05, 2018

Nifty 50 December Futures (10,834)

A strong plunge in the US markets has triggered a bearish impact on Asian markets. The Dow Jones and S&P 500 had tumbled more than 3 per cent last session. Extending the downmove, the Nikkei 225 fell 0.5 per cent to 21,919 and Hang Seng index declined 1.7 per cent to 26,802 in today's session.

Nifty and Sensex started the session with a gap-down open, tracking negative global cues. Both the indices declined 0.6 per cent and continue to trade in the negative territory. The market breadth of the Nifty index is biased towards declines.

Nifty December futures began the session with a gap-down open at 10,850. After an initial rally to an intra-day high of 10,868, the contract resumed its down move. The near-term outlook is bearish for the contract.

Traders can sell in rallies with a stop-loss at 10,860. Resumption of the downmove can drag the contract down to 10,815 and then to 10,800. A decisive fall below 10,800 can pull the contract lower to 10,775 and 10,750 in the near term. Key resistances above 10,850 are at 10,875 and 10,900.

Strategy: Make use of intra-day rallies to go short with a stop-loss at 10,860 levels

Supports: 10,815 and 10,800

Resistances: 10,850 and 10,875


Published on December 05, 2018

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