Technical Analysis

Nifty Call: Sell in intra-day rallies with fixed stop-loss at 11,930 levels

Yoganand D, BL Research Bureau | Updated on May 29, 2019 Published on May 29, 2019

Nifty 50 May Futures (11,902)

The Sensex and the Nifty commenced the session in negative territory on weak global cues. Subsequently, the benchmark indices turned choppy and continue to trend in the negative territory.

The market breadth of the Nifty index is biased towards declines. The India VIX has advanced marginally, gaining 0.6 per cent to 16.02 levels.

The Nifty PSU Bank index has slumped 2.5 per cent witnessing selling pressure. The Nifty Auto and Metal indices are also experiencing selling interest. On the other hand, the Nifty IT index has climbed 1 per cent.

The Nifty futures contract started the session with a negative territory with a gap-down open at 11,916. After recording an intra-day low at 11,890, the contract began to trend upwards and marked an intra-day high at 11,934 levels. The near-term stance will remain bearish as long as the contract trades below the key level of 11,940.

Traders can make use of intra-day rallies to sell the contact with a stop-loss at 11,930. A decisive fall below 11,890 can drag the contract down to 11,875 and 11,850 levels. A further fall below 11,850 can pull the contract down to 11,825 and 11,800 levels.

Conversely, a strong rally above 11,940 will bring back bullish momentum and take the contract northwards to 11,960 and 11,980 levels.

Strategy: Consider selling in intra-day rallies with a fixed stop-loss at 11,930 levels

Supports: 11,890 and 11,875

Resistances: 11,925 and 11,940

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