Technical Analysis

Nifty call: Tread with caution while the contract is range-bound

| Updated on April 04, 2019 Published on April 04, 2019

Nifty 50 April futures (11,735)

Taking mixed cues from the global markets, the Sensex and Nifty began the session in marginally negative territory. Subsequently, the indices turned volatile and became range-bound.

The market breadth of the Nifty index is biased towards declines. The India VIX has gained 0.33 per cent to 18.84 levels. Both the Nifty mid and small-cap indices are also trading almost flat. Selling interest is witnessed in the Nifty IT index, while buying interest is seen in the Nifty Pharma index.

The Nifty April month contract began the session flat, opening at 11,729 levels. After recording an intra-day low at 11,680, the contract bounced up to mark an intra-day high at 11,754 levels. The contract is range-bound between 11,700 and 11,750.

Traders should tread with caution as long as the contract trades in this range. A strong fall below 11,700 will be the cue for initiating fresh short positions with a fixed stop-loss. In that case, the contract can decline to 11,675 and 11,650 levels. On the upside, a decisive break above 11,750 can take the contract higher to 11,775 and 11,800 levels.

Strategy: Tread with caution while the contract is range-bound.

Supports: 11,700 and 11,675

Resistances: 11,750 and 11,775

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