Nifty call: Go short on rallies with fixed stop-loss at 9,975 bl-premium-article-image

Tunia Cherian Updated - January 11, 2018 at 04:11 PM.

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Nifty 50 July futures (9,953) The Nifty futures contract started the session with a gap up, opening at 9,985. Thereafter, it marked an intra-day high of 9,994.8 and began to decline, experiencing selling pressure. The Asian markets are trading in negative territory, indicating a bearish trend. The Nifty futures contract breached its immediate support at 9,975 and found a base at 9,950. Currently, the contract is testing this support level with a negative bias.

The underlying Nifty 50 index is also witnessing selling pressure at higher levels. The market breadth is biased towards declines. Traders with a near-term perspective can sell the contract on rallies while retaining a fixed stop-loss at 9,975 levels. An emphatic plunge below the current support level of 9,950 can pull the contract down to 9,930 and 9,910 or 9,900 levels. A strong fall below 9,900 can find support at 9,880 and 9,860 levels. Key resistances at 9,975 and 9,995 can limit the upside for the contract.

Strategy: Consider going short on rallies, while retaining a fixed stop-loss at 9,975 levels.

Supports: 9,950 and 9,930

Resistances: 9,975 and 9,995

Published on July 25, 2017 07:54