Technical Analysis

Nifty Call: Buy on declines with stop-loss at 10,770

Yoganand D | Updated on December 27, 2018 Published on December 27, 2018

Nifty 50 December Futures (10,805)

Strong US markets rally on Wednesday cheered global markets. The Dow Jones and S&P 500 had surged almost 5 per cent on Wednesday. The Nikkei 225 has gained 750 points or 3.88 per cent to 20,077 levels in today's session.

 Hang Seng index has turned volatile, has marginally dropped to negative territory by 61 points to 25,589.

Tracking the global markets, the Sensex and the Nifty began the session with a gap-up open. The market breadth of the Nifty index is biased towards advances.

The Nifty December futures contract began the expiry day with a gap-up open at 10,801. Following an initial decline to 10,777, the contract resumed its up-move and extended its rally to 10,834 levels which is the intra-day high as of now.

 The contract is hovering at 10,800 level with a positive bias. The near-term outlook will remain positive as long as the contract trades above 10,770 levels.

Traders can buy the contract is dips with a fixed stop-loss at 10,770 levels. The contract can retest the key resistance at 10,830. A decisive break of this level can take the contract higher to 10,850 levels.

Key supports below 10,770 are placed at 10,750 and 10,725 levels.

 

Strategy: Buy in intra-day declines with a fixed stop-loss at 10,770 

Supports: 10,770 and 10,750

Resistances: 10,830 and 10,850

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