Nifty call: Go short on a reversal from 10,490-10,500 with stop-loss at 10,515

Nifty 50 April Futures (10,475)

The Nifty 50 futures contract began the week on a weak note. The contract opened with a wide 50-point gap-down at 10,441 and made a low of 10,430. Though the index futures has bounced higher from the day’s low, a key resistance is ahead at 10,500.

A strong break above this hurdle will ease the downside pressure. Such a break can take the contract higher to 10,530 initially. Further break above 10,530 will then pave way for a fresh rally towards 10,600.

But if the Nifty 50 futures contract fails to break above 10,500 and reverses lower, it can remain under pressure. In such a scenario, the contract will be vulnerable to break below the support at 10,430.

A break below 10,430 will bring back renewed selling pressure and drag the contract lower to 10,390 or even lower levels thereafter.

Short-term traders can go short on a reversal from 10,490-10,500 region. Stop-loss can be placed at 10,515 for the target of 10,455. Revise the stop-loss lower to 10,480 as soon as the contract moves down to 10,465.

Strategy:  Go short on a reversal from 10,490-10,500 with a stop-loss at 10,515

Supports: 10,430, 10,390

Resistances: 10,500, 10,530

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get



 Getting recommendations just for you...
This article is closed for comments.
Please Email the Editor