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BL Research Bureau
Nifty 50 October Futures (11,597)
The Sensex and the Nifty began the day in negative territory taking cues from the weak global markets. After an initial rally, both the indices slipped into red and continue to hover in the negative territory. The Nikkei 225 has slipped 0.7 per cent to 21,878 and Hang Seng is marginally down by 0.2 per cent to 25,984 in today's session. The market breadth of the Nifty is biased towards declines. The Volatility index- India VIX is down by 0.2 per cent to 16.3 levels. Both the Nifty mid and small-cap indices have slumped 0.5 per cent and 0.6 per cent respectively. Selling pressure is seen in the Nifty metal, auto and realty sectoral indices. While the Nifty FMGC, Financial service and IT sectoral indices are slightly hovering in the positive territory.
The October month Nifty futures contract started the session with a gap-down open at 11,599. After marking an intra-day high at 11,646 the contract continued to decline. It has registered an intra-day low at 11,565. As long as the contract trades below 11,630 the near-term stance will be bearish. Traders can make use of intra-day rallies to go short with a stop-loss at 11,635 levels. A strong fall below 11,575 can drag the contract down to 11,550 levels. A further decline below this level can test supports at 11,530 and 11,510 levels. On the other hand, a decisive rally above 11,630 can take the contract higher to 11,650 levels initially. A clear break above this level can push the contract northwards to 11,675 and 11,700 levels in the short term.
Strategy: Go short on rallies with a stop-loss at 11,635
Supports: 11,575 and 11,550
Resistances: 11,630 and 11,650
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