Nifty 50 October Futures (11,227)

The domestic equity benchmark indices — the Sensex and the Nifty 50 — commenced the session with a gap-up open taking positive cues from the Asian markets. The Nikkei 225 has jumped 1.3 per cent to 23,511 levels and Heng Seng index has climbed 0.86 per cent to 23,434 levels in today's session.

Both the Sensex and the Nifty 50 indices advanced 1.5 per cent each. The market breadth of the Nifty 50 index is biased towards advances. On the other hand, the India VIX has slipped 2.4 per cent to 20.1 levels.

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The Nifty mid and small-cap indices have jumped 2.3 per cent and 3 per cent, respectively. All the sectoral indices are trading in the positive territory. The top gainers are the Nifty Media and Auto indices which have gained 4 per cent and 2.8 per cent, respectively.

The Nifty 50 October month contract began the session with a gap-up open at 11,123. After marking an intra-day low at 11,090 the contract continued to trend upwards breaching a key resistance at 11,150 and 11,200. It has marked an intra-day high at 11,234.

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The near-term view stays positive as long as the contract trades above 11,175 levels. Traders with a near term view can buy with a stop-loss at 11,170. A decisive rally above the key resistance level of 11,230 can take the contract northwards to 11,250 and then to 11,275 levels. Key supports below 11,150 are at 11,125 and 11,100 levels.

Strategy: Make use of dips to buy with a stop-loss at 11,170 levels

Supports: 11,175 and 11,150

Resistances: 11,230 and 11,250

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