Nifty 50 November future (11,926)
The Nifty 50 November future contract opened on a steady note, but is losing ground fast. Profit booking seems to have set in at higher levels as the Nifty 50 neared its previous life-time high.
The selling appears restricted to Indian markets. US indices closed at record highs on Monday.
Markets in Asia and Europe are also trading on a relatively strong note. Immediate target for the ongoing down-move is 11,902 and 11,878. Those holding short positions can book some profit if the contract does not move below this level.
But a decline below this level can drag the contract further lower to 11,834, 11,779 or 11,724.
Immediate resistances are at 11,946 and 11.965. Reversal from either of these levels will be a cue for going short.
Our call: Traders can go short at current juncture with stop loss at 12,025.
Support: 11,878, 11,834
Resistance: 11,946, 11965