Technical Analysis

Nifty Call: Go short with a stop-loss at 10,810

Gurumurthy K, BL Research Bureau Updated on January 08, 2019

Nifty 50 January Futures (10,804)

The Nifty 50 futures contract has been stuck in a narrow range between 10,750 and 10,850. Within this range, the bias is bearish. The price action on the intraday chart suggests that the possibility is high of the contract declining below 10,750 in the coming sessions. Immediate support is at 10,780. A strong break below it will make the contract vulnerable to fall below 10,750. A break below 10,750 can drag the index futures lower to 10,700.

Traders with high risk appetite can go short on a break below 10,780. Stop-loss can be placed at 10,810 for the target of 10,720. Revise the stop-loss lower to 10,765 as oon as the contract moves down to 10,755.

The bearish outlook will get negated only if the contract breaches 10,850 decisively. Such a break will ease the downside pressure and will take the Nifty 50 futures contract higher to 10,900 thereafter.

Strategy: Go short on a break below 10,780 with a stop-loss at 10,810

Supports: 10,780, 10,750

Resistances: 10,850, 10,900

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