Nifty 50 November Futures (12,080)
The Indian benchmarks broke out of the resistance and registered a fresh lifetime high today. The Nifty spot marked a high of 12,132.45 whereas the Sensex spot recorded a high of 41,120.28. This increases the chance for further appreciation.
The November futures contract of the Nifty 50 index registered fresh lifetime high of 12,137.6 today. However, since the market open, the contract has been declining and it is currently trading at 12,080. But as long as the contract trades above 12,05s0, the chance of trend reversal is low.
The market breadth of the Nifty 50 index is currently at 28-22 and it hints a bullish bias. The volatility index, India VIX has dropped by 2.2 per cent to 14.66. Among sectoral indices, the Nifty pharma index is the top performer, up by 0.7 per cent whereas the Nifty media index is the top loser, down by 2.9 per cent.
The decline in the Nifty futures contract seems to be a pullback for the breakout and until the contract stays above 12,050 one can take bullish view. Hence, traders can initiate long positions on decline with a stop-loss at 12,030 i.e. below the support at 12,050.
Strategy: Buy on declines with stop-loss at 12,030
Supports: 12,050 and 12,000
Resistances: 12,137 and 12,162
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