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Nifty 50 November futures (10,230) The US market closed on a negative note in the last session. The Dow Jones fell 0.6 per cent to 23,271 and the S&P 500 declined 0.6 per cent to close at 2,564.
However, the Asian markets recovered in today's session; the Japanese Nikkei 225 stock average advanced 1.5 per cent and the Hang Seng index too rose 0.65 per cent to 29,038.
Taking cues from the Asian markets, the domestic benchmark indices -- the Nifty and Sensex -- also began the session on a positive note with a gap-up open. The indices extended their rally, backed by value buying in mid-cap stocks.
The Nifty November futures contact began the session with a gap-up open at 10,174. After an initial decline to record an intra-day low of 10,162, the contract started to recover. It breached key resistance at 10,200 and has marked an intra-day high of 10,244. The near-term view will be positive as long as the contract trades above the key support level of 10,200.
Traders with a near-term perspective can make use of intra-day dips to buy the contract with a stop-loss at 10,190. The contract can re-test resistance at 10,240 initially. Breach of this level can push the contract higher to 10,260 or 10,275 levels. On the other hand, if the contract falls decisively below 10,175, selling pressure could emerge and it could decline to 10,150 and then to 10,130 levels.
Strategy: Use intra-day dips to buy with stop-loss at 10,190
Supports: 10,200 and 10,175
Resistances: 10,240 and 10,260
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