Technical Analysis

Nifty call: Go short on strong fall below 11,725 levels, with fixed stop-loss

Yoganand D | Updated on April 02, 2019 Published on April 02, 2019

Nifty 50 April futures (11,763)

The Sensex and the Nifty began the session on a marginally positive note, but remained choppy. Following a positive start, the Asian markets are trading on a flat note; the Nikkei 225 is hovering around 21,505 and the Hang Seng index is trading at 29,593 levels. The market breadth of the Nifty index is at break-even levels.

The India VIX (volatility index) has advanced 1.3 per cent to 18.24 levels. Both the mid- and small-cap indices are trading almost flat. The Nifty April month contract commenced the session with a positive opening at 11,768. After recording an intra-day low at 11,712, the contract resumed its up-move and marked an intra-day high at 11,777 levels.

The contract faces selling pressure at higher levels. It is range-bound between 11,725 and 11,775. A strong fall below the immediate key support at 11,725 can result in selling interest. In that case, traders with a short-term view can go short with a fixed stop-loss.

The contract can decline and test subsequent supports at 11,700 and 11,675 levels. Key supports are placed at 11,650 and 11,630. On the upside, a strong rally beyond 11,775 can take the contract higher to 11,800. Subsequent key resistances are at 11,825 and 11,850 levels.

Strategy: Go short on a strong fall below 11,725 levels, with a fixed stop-loss

Supports: 11,725 and 11,700

Resistances: 11,775 and 11,800

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