Technical Analysis

Nifty Call: Go short with a stop-loss at 11,015

Gurumurthy K | Updated on July 16, 2018 Published on July 16, 2018

Nifty 50 July Futures (10,988)

The Nifty 50 futures contract has begun the week on a tepid note. The contract opened at the day's high of 11,020 and has come-off subsequently making a low of 10,970.

The near-term outlook is negative. Resistance is between 10,990 and 11,000 which is likely to cap the upside. A dip to test the next support region of 10,950-10,940 is likely now.

If the contract manages to bounce from this support zone, a relief rally to 11,000 is possible. But a break below 10,940 can drag the index futures lower to 10,920 or even 10,900 in the coming sessions.

Traders can go short at current levels. Stop-loss can be placed at 11,015 for the target of 10,945. Revise the stop-loss lower to 10,975 as soon as the contract moves down to 10,960.

The region between 11,000 and 11,020 is a crucial resistance. A strong break above 11,020 is needed for the downside pressure to ease. Such a break will then increase the likelihood of the index futures rallying to 11,050 and 11,070 levels again.

Strategy: Go short with a stop-loss at 11,015

Supports: 10,940, 10,920

Resistances: 11,000, 11,020

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