Nifty 50 October Futures (11,909): The contract tests a key resistance at 11,900. Tread with caution

Yoganand DBL Research Bureau | Updated on October 31, 2019


Tracking the positive Asian markets, the Sensex and the Nifty began the session with a gap-up open and continues to move sideways. The Nikkei 225 index has advanced 0.4 per cent to 22,927 and Hang Seng index has gained 0.7 per cent to 26,855 levels in today's session. Both the Sensex and the Nifty are trading sideways, gaining over 0.5 per cent each. The market breadth of the Nifty is biased towards advances. The India VIX, volatility index has fallen 1.5 per cent to 16.4 levels. The Nifty mid and small-cap indices are also witnessing buying interest and have gained about 1 per cent each.

The October month Nifty contract started the derivatives expiry session with a gap-up open at 11,880. Following an initial decline to 11,874 the contract resumed the uptrend and breached the key resistance at 11,900 levels. Recording an intra-day high at 11,923 the contract stated to test the key resistance level at 11,900. At this juncture, traders should tread with caution as profit-booking can emerge at higher levels. A strong rally above the immediate resistance level of 11,925 can take the contract higher to 11,950 and then to 11,975 levels. Traders can go long above 11,925 with a fixed stop-loss. On the other hand, a slump below the vital support level of 11,874 can drag the contract down to 11,840 and then to 11,810 levels.

Strategy: The contract tests a key resistance at 11,900. Tread with caution

Supports: 11,874 and 11,840

Resistances: 11,925 and 11,950


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Published on October 31, 2019

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