Technical Analysis

Nifty Call: Buy on dips with stop-loss at 10,880

Yoganand D | Updated on December 28, 2018 Published on December 28, 2018

Nifty 50 January Futures (10,920)

The Sensex and the Nifty began the session with a gap-up open, taking cues from the positive US markets.

The Dow Jones and S&P 500 surged 1.1 per cent and 0.8 per cent respectively on the previous day. The Asian markets are choppy and showing mixed cues in today's session.

The market breadth of the Nifty index is biased towards advances. On the other hand, the India VIX has slumped 4.4 per cent to 15.35 levels.

All the sectoral indices are trading in positive territory. The Nifty January 2019 futures began the session on a positive note, opening at 10,850 and continued to trend upwards.

The contract breached the key resistance at 10,900 and recorded an intra-day high at 10,941. The near-term outlook is bullish for the Nifty futures contract.

Traders with a near-term view can buy on declines, while maintaining a stop-loss at 10,880 levels. Key supports are at 10,900 and 10,880.

 A strong rally above the immediate resistance level of 10,940 can take the contract higher to 10,960 and 10,975 levels. Next key resistances are at 11,000 and 11,025 levels.

 

Strategy: Buy the contract on intra-day dips with a fixed stop-loss at 10,880 levels.

Supports: 10,900 and 10,880

Resistances: 10,940 and 10,960

 

 

 

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