Nifty Call: Go short on fall below 12,800 with fixed stop-loss

Nifty 50 November Futures (12,837)

The Sensex and the Nifty 50 commenced the session on a positive note amid mixed Asian cues. The Nikkei 225 has climbed 0.4 per cent to 26,007 while the Hang Seng index is almost trading flat at 26,372 levels. Following an initial up move, the Sensex and the Nifty 50 indices have begun to experience selling interest at a higher level and have started to trend downwards. Both the indices have climbed about 0.25 per cent so far. The market breadth of the Nifty 50 index is biased towards advances. On the other hand, the India VIX has jumped 5.8 per cent to 20.2 levels signifying an increase in volatility. The Nifty mid-cap index is up by 0.36 per cent while the small-cap index is down by 0.25 on selling pressure.

Among the sectoral indices, the Nifty metal index is the top gainer that has advanced 2.8 per cent, followed-by Nifty PSU Bank, which has climbed 1.35 per cent. Nifty Media index has slipped 1.2 per cent. Nifty IT and Pharma indices have declined 0.5 per cent each. The November futures contract commended the session with a gap-up open at 12,897 and registered an intraday high at 12,906. But witnessing selling interest the contract declined to mark an intraday low at 12,801. As long as the contract trades above 12,800, the near term view stays positive. But a conclusive fall below this base can drag the contract down to 12,780 and then to 12,750. Next supports are at 12,725 and 12,700 levels. Resistances are at 12,865 and 12,900

Strategy: The contract trades above key support. Go short on a fall below 12,800 with a fixed stop-loss.

Supports: 12,800 and 12,780

Resistances : 12,865 and 12,900

BL Research Bureau