Technical Analysis

Nifty 50 November Futures (11,930): Tread with caution

Yoganand D BL Research Bureau | Updated on November 13, 2019 Published on November 13, 2019


Taking negative cues from the Asian markets, the Sensex and the Nifty started the session in red. But, immediately entered the positive territory and turned choppy.

The benchmark indices are trading flat, wavering between positive and negative territory. The Nikkei 225 has fallen 0.8 per cent to 23,319 and Hang Seng index has slumped 2 per cent to 26,508 in today's session.

The market breadth of the Nifty is biased towards declines. The India VIX is hovering in the positive territory, gaining marginally by 0.16 per cent to 16.27 levels. Both the Nifty mid and small cap indices have declined 0.3 per cent and 0.6 per cent respectively. Apart from the Nifty Auto index which is trading in the positive zone, all the sectoral indices are hovering in the negative territory.

After a negative open at 11,919 the Nifty November contract recorded an intra-day low at 11,908 and bounced up. However, the upside was capped. The contract marked an intra-day high at 11,956 and began to move sideways in the band between 11,910 and 11,950.

Traders should tread with caution as long as the contract is range-bound. A strong rally above 11,950 can take the contract higher to 11,975 and then to 11,990 levels. On the other hand, a strong fall below the key support in the 11,910-11,900 band can bring selling pressure and drag the contract down to 11,870 and then to 11,850 levels.

Strategy: The contract is range-bound. Tread with caution.

Supports: 11,900 and 11,870

Resistances: 11,950 and 11,975

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Published on November 13, 2019
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