Nifty call: Make use of intra-day dips to buy with stop-loss at 11,740

Nifty 50 November futures (11,820)

Taking cues from the positive global markets, the domestic equity indices - the Sensex and the Nifty 50 - started the session with a gap-up open and continued to trend upwards. Both the indices have advanced about 1.3 per cent each.

The market breath of the Nifty 50 index is biased towards advances. On the other hand, there is decrease in volatility as the India VIX has slumped 3.9 per cent to 24.2 levels. The Nifty mid as well small-cap indices have advanced 0.7 per cent and 0.5 per cent respectively.

The Nifty Bank index is again a top gainer among the sectoral indices; it that has climbed 2.6 per cent, supported by Nifty PSU and PVT Bank indices, which have rallied 1.3 per cent and 2.5 per cent correspondingly. The Nifty realty and media indices have declined by 1.8 per cent and 0.4 per cent respectively.

The Nifty 50 November month contract started the session with a gap-up open at 11,749. After an initial decline, the contract recorded an intra-day low at 11,731 and continued to trend upwards. The contract has marked an intra-day high at 11,823 and tests resistance at 11,820.

The near-term view stays positive as long as the contract trades above 11,750 levels. Traders can make use of dips to buy with a stop-loss at 11,740 levels. A strong rally above 11,820 can take it higher to 11,840 and then to 11,865 levels. Key supports below 11,750 are at 11,725 and 11,700 levels.

Strategy: Make use of intra-day dips to buy with a stop-loss at 11,740.

Supports: 11,750 and 11,725

Resistances: 11,820 and 11,840

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