Technical Analysis

Nifty call: Go long on reversal from 11,050 levels

Yoganand D, BL Research Bureau | Updated on March 07, 2019 Published on March 07, 2019

Nifty 50 March Futures (11,074)

Despite the negative cues from the global markets, the Sensex and the Nifty began the session marginally in a positive note. But subsequently the benchmark indices turned volatile and have entered the negative territory.

The Dow Jones has declined 0.5 per cent to 25,673 and S&P 500 has fallen 0.65 per cent to 2,771 levels last session. Tracking the US markets, Asian markets have declined. The Nikkei 225 fell 0.65 per cent to 21,456 and Hang Seng Index has slumped 0.7 per cent to 28,823 levels in today's session.

Both the Sensex and the Nifty are witnessing selling pressure at higher levels. The market breadth of the Nifty index is biased towards decline. Apart from the Nifty FMCG and PSU Bank sectoral indices, other indices are also hovering in the negative territory.

The Nifty March month futures contract began the session with a gap-up open at 11,114. The contract began to decline marking this level as intra-day high and has slipped into the negative zone. It has recorded an intra-day low at 11,067 levels.

Traders can initiate fresh long positions on an upward reversal from the key support level of 11,050 levels with a fixed stop-loss. An upward reversal can take the contract higher to re-test key resistances at 11,000 and 11,120 levels. Key supports below 11,050 are placed at 11,025 and 11,000. A further fall below 11,000 can drag the contract down to 10,950 levels.

Strategy: Consider initiating fresh long positions on a reversal from 11,050 levels with a fixed stop-loss

Supports: 11,050 and 11,025

Resistances: 11,100 and 11,125

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