Technical Analysis

Nifty call: Go short on break below 10,900 with stop-loss at 10,925

Gurumurthy K | Updated on December 31, 2018 Published on December 31, 2018

Nifty 50 January Futures (10,925) The Nifty 50 futures contract opened with a gap-up at 10,960 but failed to sustain higher. The contract made an intra-day high of 10,984.8 and has come-off sharply from there. Broadly, the contract is stuck in a narrow range above 10,900.

The immediate outlook is unclear. A breakout on either side of 10,900 or 10,950 will determine the direction of the next move. Traders can stay out of the market until a clear trend emerges.

If the index futures sustain above 10,900 and breaches 10,950 decisively, a rally to 11,000 is possible in the coming sessions.

On the other hand, if the Nifty 50 futures contract breaks below 10,900, it can come under pressure. Such a break can drag the contract lower to 10,845 or 10,835.

Traders can go short on a break below 10,900. Stop-loss can be placed at 10,925 for the target of 10,850. Revise the stop-loss lower to 10,885 as soon as the contract moves down to 10,870.

Strategy: Go short on a break below 10,900 with a stop-loss at 10,925

Supports: 10,900, 10,850

Resistances: 10,950, 11,000

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