Technical Analysis

Nifty call: Tread with caution as the contract is volatile

Yoganand D | Updated on April 22, 2021

A strong rally above 14,350 levels can take the contract higher to 14,375 and then to 14,400 levels

Nifty 50 April futures (14,344)

The Sensex and Nifty 50 started the session in negative territory with a gap-down, despite positive Asian markets. The Nikkei 225 has jumped 2.4 per cent to 29,188 levels, and the Hang Seng index has advanced 0.6 per cent to 28,788 levels.

However, the domestic benchmark indices, the Sensex and Nifty 50 have recovered from their intra-day low and are currently fluctuating between positive and negative territory.

The market breadth of the Nifty 50 is almost at break-even. The India VIX has gained 4.89 per cent to 23.5 levels, indicating an increase in volatility. The Nifty mid and small-cap indices have climbed 0.2 per cent and 0.7 per cent respectively. Selling interest is witnessed in Nifty FMCG and Auto, which have fallen 0.9 per cent and 0.4 per cent respectively. The sectoral gainers, the Nifty metal and media indices, have jumped 2 per cent and 1.7 per cent correspondingly.

The Nifty April month contract started the session with a gap-down at 14,200. After marking an intra-day low at 14,115, the contract recovered and bounced up. The contract faces a key resistance ahead at 14,350 levels. Traders should tread with caution as long as the contract trades below this level.

A strong rally above this level can take the contract higher to 14,375 and then to 14,400 levels. Next resistances are at 14,440 and then 14,460 levels. Key supports below 14,300 levels are at 14,275 and then to 14,250 levels.

Strategy: The contract is volatile and faces resistance at 14,350 levels. Tread with caution

Supports: 14,300 and 14,275

Resistances: 14,350 and 14,375

Published on April 22, 2021

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