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Nifty 50 November Futures (17,785)
The Sensex and the Nifty 50 are under pressure. The indices have declined further today. Sensex is down 0.68 per cent and is trading at 59,599. Nifty is at 17,762 and is down 0.75 per cent. The overall bearish view remains intact. Sensex can fall to 59,000, a very crucial support on a break below 59,400. Nifty on the other hand could test 17,600-17,500 in the coming days.
In the US, the Dow Jones Industrial Average (35,931) fell 0.58 per cent on Wednesday and has closed below 36,000. This has brought the index under pressure. As long as the Dow remains below 36,000, it can fall to 35,500 and even 35,000 in the coming days.
The major Asian indices are also trading in the red today. Nikkei 225 (29,469), Shanghai Composite (3,532), Hang Seng (25,320) and Kospi (2,958) are all down in the range of 0.13 per cent to 1.3 per cent.
Futures
The Nifty 50 November Futures (17,785) is down 0.7 per cent. However, there is an immediate support in the 17,720-17,700 region. If the contract manages to sustain above this support, an intraday bounce to 17,800-17,900 is possible. Strong resistance is at 17,900-17,920. The broader picture will continue to remain bearish. A strong rise past 17,920 is unlikely. Traders can wait for a rise and take fresh short positions at 17,840. Accumulate shorts at 17,890. Stop-loss can be placed at 17,980. Trail the stop-loss down to 17,810 as soon as the contract moves down to 17,740. Move the stop-loss further down to 17,720 as soon as the contract falls to 17,660. Book profits at 17,620.
The downside pressure on the contract will ease only on a strong rise past 17,920. Such a break will then pave way for a further rise to 18,000-18,100 again. But such a strong rise looks less likely as the bias is negative on the charts and a rise towards 17,900 is more likely to get fresh selling interest in the market.
Strategy
Go short on a rise at 17,840 and 17,890. Keep the stop-loss at 17,980 for the target of 17,620. Trail the stop-loss down to 17,810 as soon as the contract moves down to 17,740. Move the stop-loss further down to 17,720 as soon as the contract falls to 17,660.
Supports
17,850 and 17,920
Resistances
17,700 and 17,600
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