Technical Analysis

The Nifty call: Buy in declines with stop-loss at 10,090

Yoganand D, BL Research Bureau | Updated on October 26, 2018

Key supports below 10,100 are placed at 10,075 and 10,050 levels

Nifty 50 November Futures (10,131)

Taking bearish cues from the Asian markets, the Sensex and the Nifty began the session in negative territory with a gap-down open. However, both the indices started to recover following an initial decline. The benchmark indices have almost trimmed their initial loss and are on the brink of entering the positive territory.

The Nikkei 225 index fell 0.4 per cent to 21,184 levels and Hang Seng index declined 0.8 per cent to 24,794 levels in today’s session. The market breadth of the Nifty index has tilted towards advances. The Nifty November month futures contract started the session with a gap-down open at 10,118. After an initial decline, the contract marked an intra-day low at 10,030 and bounced up strongly. The contract breached key resistance at 10,100 and recorded an intra-day high at 10,177. As long as the contract trades above the key base level of 10,100 the contract has potential of trending higher.

Traders can buy in declines with a stop-loss at 10,090 levels. A decisive move beyond 10,150 can take the contract higher to 10,177 and 10,200 levels. An emphatic breakthrough of 10,200 is required to strengthen the up-move and take the contract northwards to 10,225 and 10,250 levels. Key supports below 10,100 are placed at 10,075 and 10,050 levels

Strategy: Buy in dips while maintaining a fixed stop-loss at 10,090 levels.

Supports: 10,100 and 10,075

Resistances: 10,150 and 10,175

Published on October 26, 2018

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