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Nifty 50 November futures (11,614)
Following a positive open, the Sensex and Nifty 50 have slipped into negative territory, dragged by the index heavyweight - Reliance Industries - that has tumbled almost 7 per cent. As a result, the benchmark indices are trading lower by about 0.2 per cent each.
Asian markets have gained in today's session; the Nikkei 225 has climbed 1.4 per cent to 23,295 and the Hang Seng index has advanced 1.2 per cent to 24,401 levels.
The market breadth of the Nifty 50 index is biased towards declines. The India VIX has gained 3.5 per cent to 25.6 levels, indicating an increase in volatility. The Nifty mid and small-cap indices are trading mixed. While the former has advanced marginally by 0.25 per cent, the latter has declined 1 per cent. The Nifty Bank has climbed 2.7 per cent, backed by a strong rally in the Nifty PVT and PSU Bank indices that have gained 2.9 per cent each. Selling interest is seen in the Nifty Pharma index, which has dropped 1 per cent.
The November month Nifty 50 contract started the session with a gap-up open at 11,683. After marking an intra-day high at 11,685, the contract began to decline. It breached a key support at 11,600, before marking an intra-day low at 11,560. The contract faces a key resistance at 11,635. A strong rally above this level will pave the way for an upmove to 11,660 and then to 11,685 levels. In that case, traders can initiate fresh long positions with a fixed stop-loss at 11,620. Key resistances above 11,685 are at 11,700 and 11,625 levels.
On the other hand, a decisive fall below the immediate support level of 11,560 can bring back selling pressure and pull the contract down to 11,530 and then to 11,500 levels.
Strategy: Go long on a strong rally above 11,635, with a stop-loss at 11,620.
Supports: 11,560 and 11,530
Resistances: 11,635 and 11,660
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