Nifty call: Buy on dips with fixed stop-loss at 9,840 levels bl-premium-article-image

Tunia Cherian Updated - January 10, 2018 at 10:35 PM.

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Nifty 50 September Futures (9,857) The Nifty started the session on a negative note with a gap-down open at 9,861 levels. After marking an intra-day high of 9,889, the Nifty futures contract slipped back into the red.

However, the contract recorded an intra-day low of 9,825 and found support at this level. The contract subsequently started to recover on the back of short-covering and buying interest. It has moved above the immediate resistance level of 9,850 levels. The underlying Nifty index is also in a recovery mode from its intra-day low.

Traders with a short-term view can buy the contract on declines as long as it trades above 9,850 levels with a stop-loss at 9,840. The contract can extend its rally and test resistance at 9,880 and 9,900 levels. A strong rally beyond 9,900 can take it higher to 9,925 and 9,950 levels. Key supports below 9,850 are at 9,825 and 9,800 levels.

Strategy: Buy the contract on dips with a fixed stop-loss at 9,840 levels.

Supports: 9,850 and 9,825

Resistances: 9,880 and 9,900

Published on September 26, 2017 08:13