Technical Analysis

Nifty 50 November Futures (12,797)

Yoganand D, BL Research Bureua | Updated on November 26, 2020 Published on November 26, 2020

Taking positive cues from the Asian markets, the Sensex and the Nifty 50 began Thursday’s session in the green. But, the domestic benchmark indices immediately slipped into the negative territory witnessing selling pressure and continued to trend downwards. The Sensex and the Nifty 50 have fallen about 0.3 per cent each. Among the Asian markets, the Nikkei 225 has advanced 0.9 per cent to 26,537 and the Hang Seng index has climbed 0.2 per cent to 26,727. The market breadth of the Nifty 50 is biased towards declines. The volatility index, India VIX, has tumbled 12.4 per cent to 20.2, indicating low volatility. The Nifty mid-cap and small-cap indices are trading mixed ― the former has fallen 0.12 per cent and the latter has climbed 0.17 per cent. Except the Nifty Pharma, which has advanced 0.3 per cent, all the other sectoral indices are hovering in the negative territory. The top sectoral losers are Nifty PVT Bank and Nifty Bank; these have declined 0.8 per cent and 0.7 per cent respectively.

The Nifty 50 November month contract commenced the expiry session on a positive note, at 12,920. After marking an intraday high at 12,927, the contract started to decline, and had slid below the key support level of 12,850. It recorded an intraday low at 12,785. The contract now tests support at 12,800. A decisive fall below this level can drag the contract down to 12,775 and then to 12,750 levels. Key supports below 12,750 are at 12,720 and 12,700. Key resistances above 12,850 are placed at 12,875 and 12,900. Traders can make use of intraday rallies to go short with fixed stop-loss at 12,860.

Strategy: Sell on rallies with stop-loss at 12,860

Supports: 12,800 and 12,775

Resistances: 12,850 and 12,875

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Published on November 26, 2020
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