Tuesday, December 22, 2015

The Nifty Call: Initiate long position in dips with stop-loss at 7,835 levels

Nifty 50 December Futures (7,847)

The Nifty futures opened the session in the negative territory at 7,836 levels. After an initial fall, the contract recorded an intra-day low at 7,807 and bounced up, recouping its initial loss. The contract, however, faces a key resistance at 7,850.

Traders with a short-term perspective can make use of dips to buy the contract, while maintaining a fixed stop-loss at 7,835 levels.

An emphatic break above the immediate resistance of 7,850 can accelerate the bullish momentum and take the contract higher to 7,875 and then to 7,900 levels.

Significant supports to note are at 7,830 and 7,800 levels. Only a decisive fall below 7,800 levels will have bearish implications and drag the contract downwards to 7,774 and 7,750 levels.

Strategy: Initiate long position in dips with stop-loss at 7,835 levels.

Supports: 7,830 and 7,800

Resistances: 7,875 and 7,900

No comments:

Post a Comment