Technical Analysis

Nifty Call: Buy in declines with a fixed stop-loss at 11,695 levels

Yoganand D | Updated on April 15, 2019 Published on April 15, 2019

Nifty 50 April Futures (11,725)

The Sensex and the Nifty began the session in a positive note, taking cues from the positive Asian markets. The Nikkei 225 has surged 1.4 per cent to 22,169 while Hang Seng Index is marginally down by 0.2 per cent to 29,849.

Both the Sensex and the Nifty continue to trend upwards. The buying interest is seen in mid and small-cap indices which have advanced 0.6 per cent and 0.8 per cent respectively. The market breadth of the Nifty index is biased towards advances.

The Nifty metal index has jumped over 2 per cent, Auto and Realty indices have added 1.3 per cent each in today's session. Following a marginal negative open at 11,689.9, the contract marked an intra-day low at 11,682 and began to trend upwards. The contract breached a key resistance at 11,700 and recorded an intra-day high at 11,730.

 As long as the contract trades above 11,700 the near-term outlook remain positive. Traders can buy the contract while maintaining a fixed stop-loss at 11,695 levels. A strong rally above the immediate resistance level of 11,725 can take the contract higher to 11,750 and then to 11,775 levels.

On the other hand, key supports are placed at 11,675 and 11,650 levels. A decisive fall below 11,650 can drag the contract lower to 11,630 and then to 11,610 levels.

Strategy: Buy in declines with a fixed stop-loss at 11,695 levels.

Supports: 11,700 and 11,675

Resistances: 11,730 and 11,750

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