Nifty Call: Go long on a strong rally above 11,830 levels

Yoganand D BL Research Bureau | Updated on October 27, 2020

Nifty 50 October Futures (11,806)

The Sensex and the Nifty 50 commenced the session on flat note and witnessed an initial decline. But the key benchmark indices recovered from their initial decline and began to trend upwards. The Sensex and the Nifty 50 have climbed 0.26 per cent and 0.5 per cent, respectively. The market breadth of the Nifty 50 index is biased towards advances. The volatility index India VIX has slipped 1.3 per cent to 22.5 levels. The Nifty mid and small-cap indices are trading mixed today — the former has advanced 0.5 per cent while the latter has marginally declined by 0.2 per cent.

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The sectoral indices are trading on a mixed bag and the top gainers are Nifty PVT Bank and Nifty Bank that have advanced 1.8 per cent and 1.7 per cent, respectively. The Nifty 50 October month contract started the session on a positive note, opening at 11,810. After an initial decline to the intra-day low of 11,723 the contract began to trend upwards. Traders can initiate fresh long positions on a strong rally above 11,830 levels with fixed stop-loss. The contract can test resistance at 11,850. A further rally above this barrier can take the contract higher to 11,875 and then to 11,900 levels. Supports are at 11,780 and 11,750 levels.

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Strategy: Go long on a strong rally above 11,830 levels with fixed stop-loss

Supports: 11,780 and 11,750

Resistances: 11,830 and 11,850

Published on October 27, 2020

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