Technical Analysis

The Nifty call: Go short with stop-loss at 10,205

Gurumurthy K BL Research Bureau | Updated on March 19, 2018

Nifty 50 March Futures (10,183)

The Nifty 50 futures contract has begun the week on a weak note. The contract tumbled below the psychological 10,200-level to make a low of 10,157. The bounce back move from this intra-day low is facing resistance at 10,200. The contract has reversed lower again from 10,195. The outlook is bearish. A fall to 10,145 is likely. A break below 10,145 can drag the index futures lower towards 10,100.

Short-term traders with high risk appetite can go short at current levels. Stop-loss can be placed at 10,205 for the target of 10,145. Revise the stop-loss lower to 10,170 as soon as the contract moves down to 10,155.

The downside pressure will ease if the contract manages to surpass 10,200 decisively. In such a scenario, a relief rally to 10,225 and 10,250 is possible.

Strategy: Go short with a stop-loss at 10,205

Supports: 10,145, 10,100

Resistances: 10,200, 10,225

Published on March 19, 2018

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