Nifty 50 November Futures (12,866)

The Sensex and the Nifty 50 stared the session on a negative note and immediately bounced in to positive territory. However, witnessing selling interest at higher levels, the benchmark indices slipped into negative territory and trading in a narrow range. The Asian markets are mixed- the Nikkei 225 has fallen 1 per cent to 25,728 levels while Hang Seng index is up by 0.26 per cent to 26,484 levels in today's sessions. Both the Sensex and the Nifty 50 are down by 0.2 per cent each. The market breadth of the Nifty 50 is biased towards declines. The India VIX has slipped 1.6 per cent to 19.4 levels.

Though the Nifty large cap indices have slipped into the negative territory but the Nifty mid and small-cap indices are featuring in the positive territory. The top sectoral gainers are Nifty Auto and PSU Bank indices that have advanced 2 per cent and 1.7 per cent respectively. Selling interest is seen in the Nifty IT and Pharma indices which have declined 1.3 per cent each.

The Nifty November month contract began the session with a gap-down open at 12,863. After an initial rally to mark an intraday high at 12,907 the contract started the decline on the back of selling interest and recorded an intraday low at 12,833.

The contract is range-bound between 112,840 and 12,900. Fresh short positions can be initiated with a fixed stop-loss if the contract reverses down from 12,900 levels. Else, a fall below the immediate support level of 12,840 will be cue for initiating fresh short positions with a fixed stop-loss. Supports below 12,840 are at 12,820 and 12,800 levels. Subsequent supports below 12,800 are placed at 12,775 and 12,750 levels. The vital resistances above 12,900 are at 12,925 and 12,950.

Strategy : The contract is range-bound. Go short if it reverses down from 12,900 with a fixed stop-loss.

Supports: 12,840 and 12,820

Resistances : 12,900 and 12,925

BL Research Bureau

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