Technical Analysis

Nifty call: Tread with caution as contract tests key resistance at 9,350

Yoganand D BL Research Bureau | Updated on January 15, 2018 Published on April 26, 2017


Nifty 50 April futures (9,341) The Nifty futures contract is keeping up the momentum after a strong rally over the last two trading days.

It opened the session on a positive note at 9,308. The contract made an intra-day low of 9,305. Subsequently, it extended its bullish momentum, experiencing buying interest and recorded an intra-day high of 9,353.9.

However, the contract faces difficulty in continuing its bullish momentum beyond 9,350 levels as it tests resistance at this level.

The market breadth of the Nifty 50 index is biased towards advances. Traders with a short-term view should tread with caution at this juncture. A downward reversal from current levels can trigger a corrective decline to 9,330 and then to 9,310. However, a strong break below 9,294 will bring back selling pressure and drag the contract down to 9,275 and 9,250.

On the upside, if the contract manages to breach above 9,350 decisively, it can rally to 9,365 or 9,375 levels in the near term.

Strategy: Tread with caution as the contract tests a key resistance at 9,350.

Supports: 9,330 and 9,310

Resistances: 9,350 and 9,365

Published on April 26, 2017
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