Technical Analysis

Nifty 50 November Futures (11,853): Sell on rallies

Yoganand D, BL Research Bureau | Updated on November 14, 2019

Nifty 50 November Futures (11,853)

The Sensex and the Nifty started the session on a flat note, taking negative cues from the weak Asian markets. The Nikkei 225 has declined 0.7 per cent to 23,141 and Hang Seng index has slumped 1 per cent to 26,300 levels. Both the Sensex and the Nifty continue to witness selling pressure at higher levels and are trading on a flat note with a negative bias. The market breadth of the Nifty index is biased towards declines. The India VIX has fallen 6 per cent to 15.4 levels. The Nifty IT has jumped 0.8 per cent while Nifty Metal has tumbled 1.5 per cent in today's session.

The Nifty futures November contract began the session marginally on a positive note at 11,875. After recording an intra-day low at 11,825 the contract started to trend upwards and marked an intra-day high at 11,924. But it failed to sustain the intra-day gains and began to decline on the back of selling interest at higher levels. Traders can make use of intra-day rallies to go short while maintaining a stop-loss at 11,900 levels. The contract can test support at 11,825. A fall below this level can drag it lower to 11,800 and then to 11,780 levels. Subsequent support is at 11,750. Key resistances above 11,900 are at 11,925 and 11,950.

Strategy: Sell on rallies while maintaining a stop-loss at 11,900 levels

Supports: 11,825 and 11,800

Resistances: 11,900 and 11,925

Published on November 14, 2019

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