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BL Research Bureau
Nifty 50 November Futures (17,975)
The Indian benchmark indices opened lower but have recovered well from the day’s low. Sensex opened at 60,179.93 and had risen back from the low of 60,029.21. It is currently trading flat at 60,325. Nifty, on the other hand, has climbed back well from the day’s low of 17,908.8. It is now at 17,986.
Key intraday resistance for the Nifty is at 18,055. The index has to break above this hurdle to gain momentum and move further towards 18,150-18,200. Inability to breach 18,055 can drag the index down to 17,900-17,800. Sensex, on the other hand, has to breach 60,500 to extend the upside to 61,000. Else a fall back to 60,000 and even lower levels is possible in the coming days.
In Asia, barring the Shanghai Composite (3,533, up 0.32 per cent) all other major indices are trading in the red. Nikkei 225 (29,728), Hang Seng (25,643) and Kospi (2,970) are down in the range of 0.27 to 0.9 per cent.
In the US, the Dow Jones Industrial Average (36,142) is managing to sustain above 36,000 and has moved up slightly on Tuesday. However, it has to break above 36,250 to gain strength and move further up to 37,000. Else the danger of it falling below 36,000 to target 35,500-35,000 on the downside will remain alive.
Futures: The Nifty 50 November (17,975) Futures contract has come-off from the high of 18,028.8. The contract has resistance at 18,080. As long as the contract trades below 18,080, it can remain in the range of 17,900-18,080. The bias will also remain bearish to break 17,900 and see a steeper fall to 17,800-17,700 eventually.
Traders can wait for a rise and go short at 18,030 and 18,070. Keep the stop-loss at 18,160. Trail the stop-loss lower to 17,980 as soon as the contract moves down to 17,930. Move the stop-loss further down to 17,920 as soon as the contract moves down to 17,870. Book profits at 17,840.
A substantial rise past 18,080 is needed to negate the above mentioned bearish view. Such a break can take the Nifty 50 contract up to 18,150-18,200.
Strategy: Go short on the rise at 18,030 and 18,070. Keep the stop-loss at 18,160 for the target of 17,840. Trail the stop-loss lower to 17,980 as soon as the contract moves down to 17,930. Move the stop-loss further down to 17,920 as soon as the contract moves down to 17,870.
Supports: 17,900 and 17,800
Resistances: 18,080 and 18,150
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