Markets

Sensex, Nifty 50 continue upward trend on global cues

Yoganand D BL Research Bureau | Updated on October 01, 2020 Published on October 01, 2020

Nifty 50 October Futures (11,417)

Taking cues from positive global cues, the domestic equity benchmark indices – Sensex and the Nifty 50 – started the session with a gap-up open and continued to trend upwards. The US benchmark indices, Dow Jones, gained 1.2 per cent to 27,781, and S&P 500 index had rallied 0.8 per cent to 3,363 levels in the last session. Only the Japanese market was open today, and the Nikkei 225 index trades flat at 23,184 levels. The Sensex and the Nifty 50 have advanced 1.4 per cent each. The market breadth of the Nifty is biased towards advances. The India VIX has slumped 3.7 per cent to 18.8 levels. Both the Nifty mid- and small-cap indices have climbed 1.3 per cent and 1 per cent respectively.

Also read Expect no gains for Nifty over the next year: Citi

The Nifty 50 futures contract began the session with a gap-up open at 11,356. Following an initial decline to the intra-day low of 11,344, the contract continued to trend upwards, breaching a key resistance at 11,400. It recorded an intra-day high at 11,436. The near-term stance stays positive as long as the contract trades above 11,350 levels. Traders with a near-term view can buy the contract on declines with a stop-loss at 11,340 levels. A strong rally above the immediate resistance level of 11,430 can take the contract northwards to 11,450 and then to 11,475 levels. The key supports below 11,350 are placed at 11,325 and 11,300 levels.

Strategy: Buy on declines with a fixed stop-loss 11,340

Supports: 11,350 and 11,325

Resistances: 11,430 and 11,450

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Published on October 01, 2020
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