Nifty call: Buy on declines with stop-loss at 7,328

Yoganand DBL Research Bureau Updated - January 20, 2018 at 02:03 AM.

27BL27_MW_NSE4_2418291f

Nifty 50 March futures (7,345)

The bullish momentum continued in the domestic markets backed by positive global cues. The Nifty contract started the session with another gap-up open at 7,328. The contract has decisively breached a key resistance at 7,300 which later transformed into a key support and provided the base.

After recording an intraday low at 7,302, the contract resumed its up-move and rallied to mark an intra-day high at 7,664 levels. The near-term outlook is bullish.

Traders with a short-term perspective can make use of dips to buy the contract while maintaining a stop-loss at 7,328 levels. The contract can extend its rally and test resistance at 7,364 and then 7,380 levels. The next significant resistance is pegged at 7,400 levels. A decline below the immediate support at 7,328 can pull the contract down to 7,300. But, a further fall below 7,300 can bring some selling pressure and drag the contract down to 7,275 and 7,250 levels.

Strategy: Make use of declines to buy the contract with a stop-loss at 7,328

Supports: 7,328 and 7,300

Resistances: 7,364 and 7,380

Published on March 2, 2016 07:46