Technical Analysis

Nifty Call: Buy with a fixed stop-loss at 11,890 levels

Yoganand D, BL Research Bureau | Updated on May 27, 2019 Published on May 27, 2019

Nifty 50 May Futures (11,930)

The Sensex and the Nifty started the day on a negative note and immediately entered the positive territory. Both the benchmark indices continued to trend upwards thereafter.

The market breadth of the Nifty index is biased towards advances. The India VIX has declined 1.3 per cent to 16.25 levels. The Nifty mid and small-cap indices have gained more than 1.2 per cent each.

The Nifty May month contract began the session in a negative territory at 11,858. After marking an intra-day low at 11,833 the contract started to trend upwards subsequently. The contract breached a key resistance at 11,900 and marked an intra-day high at 11,960 levels.

As long as the contract trades above 11,900 the near-term stance remains bullish. Traders can make use of dips to buy the contract while maintaining a fixed stop-loss at 11,890 levels. The contract can test resistance at 11,950.

A further rally above 11,950 can take the contract higher to 11,975 and 12,000 levels. Key supports below 11,900 are placed at 11,870 and 11,830 levels.

Strategy: Buy in declines with a fixed stop-loss at 11,890 levels

Supports: 11,900 and 11,870

Resistances: 11,950 and 11,975

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