Technical Analysis

Nifty Call: Buy in declines with a stop-loss at 10,800

Yoganand D, BL Research Bureau Updated on December 13, 2018

Nifty 50 December Futures (10,834)

Taking cues from positive global markets, Nifty and Sensex started the session with a gap-up open. The US markets had closed the previous session on a positive note, gaining about 0.6 per cent.

Nikkei 225 index surged 213 points or 1 per cent to 21,816 and Hang Seng index gained 309 points or 1.2 per cent to 26,496 in today's session. Domestic benchmark indices continue to trade in the positive territory with a positive bias.

Nifty mid- and small-cap indices advanced 1.4 per cent and 1 per cent, respectively. The market breadth of the Nifty index is biased towards advances.

Nifty December month futures contract started the session with a gap-up open at 10,834. After marking an intra-day high of 10,847, the contract began to decline. But it took support at around 10,800 levels and reversed higher on the back of buying interest.

Traders with a near-term view can buy the contract in declines with a stop-loss at 10,800. A strong rally above 10,850 can take the contract higher to 10,875 and then to 10,900 in the near term.

A further rally above 10,900 can take the contract northwards to 10,930 and 10,950 levels. Key supports below 10,800 are placed at 10,776 and 10,750 levels..

Strategy: Buy in declines with a stop-loss at 10,800

Supports: 10,800 and 10,776

Resistances: 10,850 and 10,875

 

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