Technical Analysis

Nifty Call: Go short with stop loss at 11,530

Yoganand D | Updated on September 05, 2018 Published on September 05, 2018

Nifty 50 September Futures (11,489)

Taking cues from the bearish Asian markets, the domestic benchmark indices – the Sensex and the Nifty − started the session on an almost flat note, but slipped into negative territory soon. Both the indices have declined about 0.5 per cent thus far today. The Japanese Nikkei 225 index has slumped 0.5 per cent to 22,580 and the Hang Seng index has tumbled more than 2 per cent to 27,321 levels. US futures are hovering in the negative territory.

The Nifty September futures contract commenced the session with a gap-down opening at 11,554. After an initial up-move, the contract recorded an intra-day high at 11,579 and resumed its down-move after witnessing selling pressure as well as profit-taking. The contract has declined about 08 points or 0.7 per cent and is trading at around 11,485 levels. The near-term outlook has turned bearish for the contract. It can continue declining. The contract has slipped below the key supports at 11,525 and 11,500, which can act as key resistances. Traders with a near-term perspective can make use of intra-day rallies to go short with a fixed stop-loss at 11,530 levels. The contract can find support at 11,475 levels. A strong decline below this level can drag it lower to 11,450 levels. The next key supports below 11,450 are at 11,420 and 11,400. On the upside, resistances at 11,500, 11,525 and 11,550 can limit the contract’s rally.

Strategy: Go short in intra-day rallies while maintaining a stop-loss at 11,530 levels.

Supports: 11,475 and 11,450

Resistances: 11,525 and 11,550

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