Technical Analysis

Nifty Call: Go long on a rally above 10,920 levels with a fixed stop-loss

Yoganand D, BL Research Bureau | Updated on December 04, 2018 Published on December 04, 2018

Nifty 50 December Futures (10,918)

Nifty and Sensex started the session on a flat note and began to decline witnessing selling interest, tracking bearish Asian markets. Nikkei 225 slumped 538 points or 2.4 per cent and Hang Seng index was volatile with a negative bias.

Nifty December futures contract opened the session on a negative note at 10,917 and started to decline. The contract continues to trade in the negative territory, experiencing selling pressure as well as profit-taking at higher levels.

The contract breached a key support at 10,900 and marked an intra-day low at 10,872. However, the contract currently tests key resistance in the band between 10,900 and 10,920. An empathic break above this band can bring back buying interest and take the contract northwards to 10,940 and 10,960 levels.

Next vital resistance is at 10,975 levels. Key immediate supports are placed at 10,870. A fall below this base level can drag the contract down to 10,850 and then to 10,825 levels. Key support below 10,825 is at 10,800. Traders with a near-term view can consider taking long positive on a strong rally above 10,925 levels with a fixed stop-loss.

Strategy: Go long on a rally above 10,920 levels with a fixed stop-loss

Supports: 10,870 and 10,850

Resistances: 10,925 and 10,940

 

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