Technical Analysis

Nifty call: Use intra-day dips to buy the contract with stop-loss at 12,355 levels

Yoganand D. | Updated on January 16, 2020 Published on January 16, 2020

Nifty 50 January futures (12,380)

Following a positive start and initial rally, the Sensex and Nifty began to decline, witnessing selling pressure at higher levels. The Asian markets are trading almost flat, the Nikkei 225 has gained 16 points to reach 23,933 and the Hang Seng index has added 28 points to touch 28,802 in today's session.

Both the Sensex and the Nifty are back in positive territory after a brief move into negative territory. However, the market breadth of the Nifty is biased towards declines. The India VIX has climbed 0.88 per cent to 14.24 levels.

The Nifty mid and small-cap indices have gained 0.8 per cent and 0.7 per cent respectively. Barring the Nifty metal index, which has slumped 1 per cent, all the other sectoral indices are trading in positive territory.

The Nifty January month contract began the session with a gap-down open at 12,359. After an initial rally to 12,409 levels, the contract started to decline on the back of selling interest at higher levels and marked an intra-day low at 12,339. But, the contract has recovered from the intra-day low and is hovering in marginally positive territory.

Traders can make use of intra-day dips to buy the contract with a stop-loss at 12,355 levels. Immediate support for the contract is at 12,360 and the next at 12,340. On the upside, a strong rally above 12,400 can take the contract higher to 12,425 and 12,450 levels in the near term.

Strategy: Make use of intra-day dips to buy the contract with stop-loss at 12,355 levels

Supports: 12,360 and 12,340

Resistances: 12,400 and 12,425

 

Published on January 16, 2020
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