Nifty 50 November Futures (18,358)

Domestic benchmarks are under pressure. BSE Sensex trading at 61,438, is down 0.3 per cent, while NSE Nifty at 18,284 is down 0.25 per cent.

Nifty 50 has declined below a key near-term support level of 18,300. Inability to bounce-back above 18,300 can drag the index down to 18,200 and even 18,100 in the coming sessions. However, this could just be a corrective fall within the broader uptrend. From a bigger picture, Nifty has to breach 18,400 to regain the bullishness.

Global cues

In Asia, all major indices are trading in green. Nikkei 225 (28,018) and Kospi (2,476) are up 0.19 and 0.02 per cent, respectively. Shanghai Composite (3,128) is up 1.46 per cent, while Hang Seng (18,326) has surged 4 per cent today.

In the US, the Dow Jones Industrial Average (33,536.70) was down 0.63 per cent on Monday. It has an important support at 33,400 and if it breaks below this level, the index is likely to fall further in the coming days.

Nifty 50 Futures

The Nifty 50 November Futures contract (18,358) is down 0.11 per cent. An immediate support is at 18,340. A break below it can take the contract down to 18,300. On the other hand, if the contract manages to sustain above 18,340 and bounces from there, a rise back to 18,400 and 18,450 is possible again. For now, the outlook is mixed. Whether the contract will sustain above 18,340 or not will determine the next leg of move. So, it is a wait and watch situation now.

Trading Strategy

Since the outlook is unclear, we suggest traders to stay out of the market today.

Supports: 18,340, 18,300

Resistances: 18,400, 18,450.