Technical Analysis

Nifty Call: Go short with fixed stop loss at 11,930 levels

Yoganand D, BL Research Bureau | Updated on June 12, 2019 Published on June 12, 2019

Nifty 50 June Futures (11,910)

The Sensex and Nifty started the session in negative territory taking bearish cues from the Asian markets. The Hang Seng index has slumped 1.9 per cent to 27,250 levels and Nikkei 225 has declined 0.4 per cent to 21,129 levels. Sensex and Nifty continued to trend downwards and have fallen 0.6 per cent each.

The market breadth of the Nifty index is biased towards declines. The India VIX has also slipped 1 per cent to 14.33 levels. The Nifty mid and small-cap indices have slumped 0.5 per cent and 0.2 per cent respectively.

The Nifty June futures began the session with a gap-down open at 11,960 levels. After recording an intra-day high at 11,965 levels, the contract declined and marked an intra-day low at 11,886. But, the contract is on a recovery mode.

A decisive rally above 11,925 is needed to extend the corrective rally to 11,950 and 11,975 levels. On the downside, a decisive fall below 11,880 will strength the down-move and drag the contract down to 11,850 and 11,830 levels. Next key support is at 11,800. Traders can consider initiating fresh short positions if the contract fails to move beyond 11,925 levels with a stop-loss at 11,930 levels.

Strategy: Go short if the contract fails to move beyond 11,925 levels with a fixed stop-loss at 11,930 levels

Supports: 11,880 and 11,850

Resistances: 11,925 and 11,950

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