Technical Analysis

Nifty Call: Nifty 50 October Futures (18,265)

Gurumurthy K BL Research Bureau | Updated on October 22, 2021

Go long now and on dips at 18,215. Keep the stop-loss at 18,160. Book profits at 18,385

Sensex and Nifty 50 are trading higher. The strong bounce from Thursday’s low of 18,048 (Nifty) and 60,485 (Sensex) is sustaining well. Nifty is trading at 18,275, up 0.53 per cent and Sensex is at 61,335, up 0.68 per cent for the day. 18,200 and 61,000 can be a good intraday support for the Nifty and Sensex respectively. As long as the indices stay above these supports a rise to 18,400 (Nifty) and 62,000 (Sensex) is possible in the coming sessions.

In the US, the Dow Jones Industrial Average (35,603) fell in the initial trades but managed to recover from the day’s low of 35,442 and close flat for the day. The bias is bullish to see 36,000–36,250 on the upside.

The Asian indices are trading mixed. Kospi and Shanghai Composite index are down marginally by 0.2 per cent and 0.1 per cent respectively. Nikkei is up 0.2 per cent and Hang Seng index is up 0.17 per cent.

Futures: The Nifty 50 October Futures (18,265) is managing to hold well above 18,200. The contract is up 0.28 per cent for the day. Support is in the 18,200-18,175 region. As long as the contract trades above this support zone, the chances are high for to rise towards 18,400 in the coming sessions.

Traders with high-risk appetite can go long at current levels and accumulate longs on dips at 18,215. Stop-loss can be placed at 18,160. Book profits at 18,385. Trail the stop-loss up to 18,290 as soon as the contract moves up to 18,310. Move the stop-loss further up to 18,325 as soon as the contract rises to 18,365.

The contract will come under pressure only on a strong break below 18,175. Such break can drag it to 18,000 again.

Strategy: Go long now and on dips at 18,215. Keep the stop-loss at 18,160. Book profits at 18,385. Trail the stop-loss up to 18,290 as soon as the contract moves up to 18,310. Move the stop-loss further up to 18,325 as soon as the contract rises to 18,365.

Supports: 18,175 and 18,000

Resistances: 18,300 and 18,400

Published on October 22, 2021

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