Technical Analysis

Nifty call: Go short at current levels with stop-loss at 10,885

Gurumurthy K | Updated on February 04, 2019 Published on February 04, 2019

Nifty 50 February Futures (10,855) The impact of the Interim Budget seems to have been short-lived. The Nifty 50 futures began the week on a negative note, after having coming off sharply from Friday's high of 11,023.

On the charts, the 10,500-11,000 sideways range, within which the contract has been broadly trading since November 2018, remains intact. Within this range, the outlook is now negative. There is a strong likelihood of the contract falling towards 10,800 and 10,770 in the near term.

Immediate resistance is at 10,870 and the next key hurdle is in the 10,890-10,900 region. An intermediate bounce to these resistances is likely to find fresh sellers entering the market.

Traders can go short at current levels. Stop-loss can be placed at 10,885 for the target of 10,790. Revise the stop-loss lower to 10,845 as soon as the contract moves down to 10,830.

The downside pressure will ease only if the index futures breaks above 10,900 decisively. But such a strong move looks less probable at the moment.

Strategy: Go short at current levels with a stop-loss at 10,885

Supports: 10,800, 10,770

Resistances: 10,870, 10,900

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