Technical Analysis

Nifty Call: Sell in intra-day rallies with a stop-loss at 10,775

Yoganand D BL Research Bureau | Updated on January 14, 2019 Published on January 14, 2019

Nifty 50 January Futures (10,736)

Taking negative cues from the Asian markets, Hang Seng index which has slumped 415 points or 1.5 per cent to trade at 26,251 in today's session, the Nifty and the Sensex began the session in red.

Both the benchmark indices started the session in negative territory with a gap-down open and continues to trade in the negative territory with bearish bias. The market breadth of the Nifty index is biased towards declines. The volatility index, India VIX has gained 6.8 per cent to 16.41 levels. The Nifty January futures contract began the session with a minor gap-down open at 10,812.

After marking an intra-day rally to 10,820 levels, the contract resumed its down-move witnessing selling interest. The contract breached key supports at 10,800 and 10,750 while trending down. It has recorded an intra-day low at 10,720 levels.

The near-term outlook is bearish for the contract.

Traders can make use of rallies to go short with a stop-loss at 10,775 levels. Key resistances at 10,750 and 10,775 can limit the upside. Next key resistance above 10,775 is at 10,800. On continuation of the downtrend, the contract can test supports at 10,720 and then 10,700. A decisive fall below 10,700 can drag the contract down to 10,680 and 10,650 levels.

Strategy: Sell in intra-day rallies with a stop-loss at 10,775

Supports: 10,720 and 10,700

Resistances: 10,750 and 10,775

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