Technical Analysis

Nifty Call: Nifty 50 October Futures (18,163)

Gurumurthy K BL Research Bureau | Updated on October 21, 2021

Go short now and on a rally at 18,210. Keep the stop-loss at 18,245 and book profits at 18,000.

Indian benchmark indices have been under pressure over the last few days. Both the Sensex and Nifty 50 have come-off sharply after hitting a new all-time high of 62,245 and 18,604 on Tuesday. The indices seem to have run into profit booking over the last few days. Sensex and Nifty are trading lower by 0.62 per cent and 0.55 per cent today. Sensex is at 60,880 and Nifty is trading at 18,165. A further fall to 18,100–18,000 on the Nifty and 60,500–60,000 on the Sensex looks likely in the coming sessions.

Asian indices are trading mixed. Nikkei 225 (28,297) is down 1.6 per cent and Hang Seng (25,954) is down 0.7 per cent. Kospi (3,011) is trading flat while Shanghai Composite (3,597) is up 0.3 per cent.

In the US, the Dow Jones Industrial Average (35,609) has been moving up well this week. The index looks bullish to test 36,000–36,250 this week and is more likely to outperform the Sensex and Nifty.

Futures: The Nifty 50 October Futures (18,163) is trading sharply down by 0.85 per cent. The outlook is bearish. It can fall to 18,000 in the coming sessions from where a corrective bounce is possible.

Traders can go short at current levels and accumulate on a rise at 18,210. Stop-loss can be placed at 18,245. Book profits at 18,000. Trail the stop-loss down to 18,135 as soon as the contract moves down to 18,090. Move the stop-loss further lower to 18,080 as soon as the contract falls to 18,030.

Strong resistance is in the 18,300–18,400 region. The outlook will turn bullish again only on a strong rise past 18,400.

Strategy: Go short now and on a rally at 18,210. Keep the stop-loss at 18,245 and book profits at 18,000. Trail the stop-loss down to 18,135 as soon as the contract moves down to 18,090. Move the stop-loss further lower to 18,080 as soon as the contract falls to 18,030.

Supports: 18,000 and 17,900

Resistances: 18,300 and 18,400

Published on October 21, 2021

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