Technical Analysis

Nifty call: Traders with high risk appetite can go long with a stop-loss at 10,610

Gurumurthy K | Updated on November 14, 2018 Published on November 14, 2018

Nifty 50 November Futures (10,640)

The Nifty 50 futures contract is trading volatile. The contract opened with a 40-point gap-up at 10,655 and surged to an intraday high of 10,680. However, it failed to sustain higher and fell back sharply to make a low of 10,577. The index futures has bounced back from the lows again and is currently trading at 10,640.

Intraday resistance is in the 10,680-10,685 region which is likely to be tested in the coming sessions. Whether the contract breaks above this hurdle or not will decide the next move.

A strong break above 10,685 will take the contract initially higher to 10,700. A further break above 10,700 will boost the momentum and will take the index futures higher to 10,725 and 10,750 thereafter.

On the other hand, if the Nifty 50 futures contract reverses lower from the 10,680-10,685 resistance zone, a pull-back move to 10,600 and 10,580 is possible.

On the charts, the bias is bullish. As such the possibility is high of the contract breaking above 10,685 in the coming sessions.

Traders with high risk appetite can go long. Stop-loss can be placed at 10,610 for the target of 10,700. Revise the stop-loss higher to 10,655 as soon as the contract moves up to 10,675.

Strategy: Go long with a stop-loss at 10,610

Supports: 10,615, 10,580

Resistances: 10,685, 10,720


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