Technical Analysis

Nifty Call: Go long on dips at 10,645 with a stop-loss at 10,610

Gurumurthy K, BL Research Bureau Updated on December 12, 2018

Nifty 50 December Futures (10,684)

Nifty 50 futures contract is holding on to its gains after making a strong recovery on Tuesday. The index futures had surged over 2 per cent from its low of 10,352 on Tuesday and closed at 10,581. The contract rose another one per cent today and is retaining its strength. The index futures made a high of 10,707 and has come-off from there.

As long as the contract trades below 10,700, a dip to 10,620 in the near term cannot be ruled out. The outlook will turn negative if the Nifty 50 futures contract declines below 10,620. In such a scenario, a fall to 10,550 cannot be ruled out.

On the other hand, the contract will gain further momentum on a strong break above 10,700. Such a break can take it further higher to 10,725 and 10,765 thereafter.

Traders can make use of dips to go long at 10,645. Stop-loss can be placed at 10,610 for the target of 10,715. Revise the stop-loss higher to 10,665 as soon as the contract moves up to 10,680.

Strategy: Go long on dips at 10,645 with a stop-loss at 10,610.

 Supports: 10,620, 10,550

Resistances: 10,700, 10,725

 

 

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