Technical Analysis

Nifty call: Go long on dips at 11,435 and 11,415, with stop-loss at 11,395

| Updated on March 18, 2019 Published on March 18, 2019

Nifty 50 March Futures (11,469)

The Nifty 50 futures contract opened with a 35-point gap-up at 11,505 and surged to an intra-day high of 11,554. However, the contract failed to sustain higher and has come-off sharply, giving back all the gains. A strong rise past the psychological level of 11,500 is needed for the index futures to resume the upmove.

As long as the contract trades below 11,500, there is a strong likelihood of it moving down to 11,430 or 11,400 in the near term. A further fall below 11,400 looks less probable at the moment, as fresh buyers are likely to emerge at lower levels and limit the downside. As such, an upward reversal from 11,430 or 11,400 can take the contract higher again to 11,500 and 11,550 levels.

Traders can wait for dips and go long at 11,435 and 11,415. Stop-loss can be placed at 11,395 for the target of 11,520. Revise the stop-loss higher to 11,455 as soon as the contract moves up to 11,480.

Strategy: Go long on dips at 11,435 and 11,415 with a stop-loss at 11,395

Supports: 11,430, 11,400

Resistances: 11,500, 11,555

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