Technical Analysis

Nifty call: Go long on a strong rally beyond 9,610 levels with a fixed stop-loss

Yoganand D BL Research Bureau | Updated on January 12, 2018 Published on May 30, 2017

Nifty 50 June Futures (9,600)

After closing above the 9,600-mark on Monday, the Nifty futures contract started today's session with a negative open at 9,590 levels.

However after taking support at an intra-day low of 9,582, the contract resumed its upmove and surpassed the key level of 9,600. The contract recorded an intra-day high of 9,627 levels and once again turned volatile. Currently, the contract tests the key resistance level of 9,600.

The underlying Nifty 50 index is also trading volatile. The market breadth of the index is biased towards advances. The index witnesses selling pressure at higher levels.

Traders with a short-term view should tread with caution as long as the contract tests the key resistance level of 9,600.

Traders can consider initiating fresh long positions on a rally beyond 9,610 levels with a fixed stop-loss. The contract can re-test the resistance level of 9,630.

Further rally beyond 9,630 can push the contract higher to 9,640 and 9,650. But, if the contract declines below the immediate support level of 9,580, selling pressure can intensify to pull the contract down to 9,560 or 9,550. Avoid taking fresh long positions on such a fall.

Strategy: Go long a strong rally beyond 9,610 levels with a fixed stop-loss

Supports: 9,580 and 9,560

Resistances: 9,610 and 9,630

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