Technical Analysis

Nifty Call: Go short with a stop-loss at 11,810 levels

Yoganand D, BL Research Bureau | Updated on April 18, 2019 Published on April 18, 2019

Nifty 50 April Futures (11,772)

After a positive start, the Sensex and the Nifty began to decline and slipped into negative territory. Both the benchmark indices continue to hover in the negative territory. The market breadth of the Nifty index is biased towards declines.

Selling pressure is also seen in the Nifty Mid and Small-cap indices which have slumped 0.9 per cent and 1.4 per cent respectively. On the other hand, the India VIX, the volatility index has jumped 5.6 per cent to 22.9 levels. Apart from the Nifty Auto index, all the sectoral indices are hovering in the negative territory. 

The Nifty April futures contract began the session on a positive note at 11,859 and started to decline. The contract breached a key support at 11,800 and continued to trend downwards. As long as the contract trades below 11,800 the near-term outlook will remain bearish.

Traders can make use of intra-day rallies to sell the contract with a stop-loss at 11,810. The contract can test support at 11,750. A decisive fall below 11,750 can drag the contract down to 11,725 and 11,700 levels. Key resistances above 11,800 are at 11,830 and 11,850 levels.

Strategy: Make use of intra-day rallies to go short with a stop-loss at 11,810 levels

Supports: 11,750 and 11,725

Resistances: 11,800 and 11,830

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