Technical Analysis

Nifty Call: Go short on a strong fall below 10,900

Yoganand D | Updated on January 17, 2019 Published on January 17, 2019

BL Research Bureau

Nifty 50 January Futures (10,909)

Following a strong rally on Tuesday, the Nifty January futures contract is testing a key resistance around 10,900. Also, the contract faces a significant resistance ahead at 11,000.

Both the Nifty and the Sensex began to decline on the back of selling interest after a positive start. The market breadth of the Nifty index is at break-even level. The Nifty mid and small cap indices are trading in red. The Nifty PSU bank index is under pressure and has slumped 2 per cent, witnessing selling pressure. On the other hand, buying is seen in the Nifty IT and Realty indices which has advanced 0.5 per cent and 0.6 per cent respectively.

The Nifty January futures began the session on a positive note, opening at 10,942 levels. But, after recording an intra-day high at 10,949 the contract started to decline. Key support at 10,900 is providing base for the contract. A strong fall below this level can strengthen the bearish momentum and drag the contract down to 10,875 and then to 10,850 levels. Subsequent supports are at 10,830 and 10,800. Resistances are at 10,925 and 10,950 levels.

Strategy: Go short on a strong fall below 10,900

Supports: 10,900 and 10,875

Resistances: 10,925 and 10,950

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