Comments
BL Research Bureau
Nifty 50 October Futures (11,590)
Equity markets across the globe seems to be sluggish. The Indian stock market is no different. Both the Nifty and the Sensex, are moving within a range, and continue to consolidate for the fourth straight day.
On checking the market breadth of the Nifty 50 index, one can see that the number of stocks that have gained and lost are almost equally split as shown by advance – decline ratio, which stands at 26 – 24. At 15.75, India VIX - the volatility index, has dropped 3 per cent today implying a lack of activity. Most of the sectoral indices also look subdued. The exceptions are the Nifty PSU bank index, up by 1 per cent and the Nifty pharma index, down by 1.2 per cent in today’s session--the top gainer and loser respectively so far today.
The October futures of the Nifty 50 index opened on a flat note at 11,616 against the previous day’s close of 11,611. It continues to oscillate within the range between 11,575 and 11,700 and the next leg of trade can be confirmed only if it breaks either of the limits of the range. Hence, traders are advocated to remain on the sidelines and initiate positions only after witnessing a decisive break of either 11,575 or 11,700.
On the upside, the contract will face resistance at 11,630 whereas a break below 11,575 can drag the index towards 11,500.
Strategy: Stay on the sidelines and wait for a decisive breakout.
Supports: 11,575 and 11,500
Resistances: 11,630 and 11,700
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.