Technical Analysis

Nifty call: Buy on dips with fixed stop-loss at 11,950 levels

Yoganand D | Updated on June 11, 2019 Published on June 11, 2019

Nifty 50 June futures (11,987)

Taking positive cues from the Asian markets, the Sensex and the Nifty began the session in the green, opening with an upward gap. After an initial decline, the key indices resumed the up-move. The Nikkei 225 has rallied 0.3 per cent to 21,204 and the Hang Seng index has advanced 0.8 per cent to 27,801 levels in today's session.

The Sensex and the Nifty have gained 0.36 per cent and 0.33 per cent respectively. The market breadth of the Nifty index is biased towards advances. On the other hand, the India VIX has fallen 1.4 per cent to 14.76 levels. The Nifty small cap index is witnessing selling pressure and has declined 0.23 per cent.

The Nifty June month contract commenced the session with a gap-up open at 11,975. Following an initial decline, the contract recorded an intra-day low at 11,917 levels and has continued to trend upwards. The contract has registered an intra-day high at 11,989. It faces a key resistance ahead at 12,000. A strong rally above this barrier will strengthen the uptrend and take the contract higher to 12,025 and 12,050 levels.

Traders can make use of dips to buy the contract, with a fixed stop-loss at 11,950 levels. But a strong fall below the key support level of 11,955, could bring the contract under selling pressure and it could decline to 11,930 and then to 11,915 levels. The next key supports are placed at 11,900 and 11,880 levels.

Strategy: Make use of intra-day dips to buy, with a fixed stop-loss at 11,950 levels

Supports: 11,955 and 11,930

Resistances: 12,000 and 12,025

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