Technical Analysis

The Nifty call: Make use of intra-day rallies to go short

Yoganand D BL Research Bureau | Updated on January 15, 2018 Published on April 28, 2017

nifty



Nifty 50 May Futures (9,326)

The Nifty May futures contract started the session on a negative note at 9,353 and continued to trend downwards. It breached its immediate key support at 9,330 and recorded an intra-day low of 9,313. The contract has fallen less than its underlying the Nifty 50 index and it trades with higher premium.

The market breadth of the Nifty 50 index is well balanced and the advances/declines ratio is almost equal. The Nifty 50 index is experiencing selling pressure and has breached its key immediate support at 9,300 levels and has declined more than 0.5 per cent. Overall, the Nifty futures contract outlook is bearish.

The contract can continue to decline and test the immediate support at 9,300 levels. Further fall below 9,300 can pull the contract down to 9,280 and then to 9,260 levels. Traders with a short-term perspective can make use of intra-day rallies to go short with a stop-loss at 9,340 levels. To reinforce the bullish momentum, the contract needs to emphatically move beyond 9,350 levels. Next key resistances are at 9,365 and 9,380 levels.

Strategy: Make use of intra-day rallies to go short with a stop-loss at 9,340 levels

Supports: 9,300 and 9,280

Resistances: 9,330 and 9,350

Published on April 28, 2017
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