Technical Analysis

Nifty Call: Go short at current levels and at 10,600 with a stop-loss at 10,615

Gurumurthy K | Updated on October 17, 2018 Published on October 17, 2018

Nifty 50 October Futures (10,585)

Nifty 50 futures contract opened with a wide 100-point gap-up at 10,690, but failed to sustain higher. The contract made a high of 10,699 and has come-off sharply from there giving back all the gains.

The price action indicates strong selling interest at higher levels. This leaves the outlook bearish. Resistance is at 10,605. As long as the contract trades below this hurdle, a fall to 10,520 or even 10,480 is likely in the coming sessions.

Traders can go short at current levels and also at 10,600. Stop-loss can be placed at 10,615 for the target of 10,520. Revise the stop-loss lower to 10,560 as soon as the contract moves down to 10,545.

The downside pressure will ease only if the index futures manages to decisively rise past 10,605. In such a scenario, the contract can move up to 10,650 and 10,700 levels again.

Strategy: Go short at current levels and at 10,600 with a stop-loss at 10,615

Supports: 10,520, 10,480

Resistances: 10,605, 10,650

 

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