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Nifty futures (19,850)
Nifty 50 (19,800) began today’s session almost flat at 19,809.60 versus Thursday’s close of 19,802. It has stayed flat in the first hour of trade.
The market breadth gives a bearish picture as the advances/ declines ratio of the Nifty 50 stands at 20/30. However, most mid- and small-cap indices are in the green.
Among the sectors, Nifty Pharma, up 1.3 per cent, is the top gainer. Nifty IT, down 0.4 per cent, is the top loser.
The Nifty 50 and Nifty futures charts show that the trend has been flat over the past few sessions.
Nifty 50 futures
The November futures contract of Nifty 50 opened today’s session flat at 19,869.95 versus yesterday’s close of 19,868.75. It is currently trading at 19,850, down 0.1 per cent.
The chart shows that the contract is charting a sideways trend between 19,900 and 19,750. Nifty futures should move out of this range to establish the next leg of trend.
A breakout of 19,900 can lead to a rally to 20,000. Resistance above 20,000 is at 20,100. On the other hand, if the contract falls from the current level, the nearest support would be the range bottom of 19,750. Subsequent support is at 19,650.
Trading strategy
The trend is flat. But since Nifty futures is trading near the range top, the risk-reward ratio favours short positions.
So, traders can consider selling Nifty futures at the current level of 19,850. Target and stop-loss can be at 19,750 and 19,910 respectively.
Supports: 19,750 and 19,650
Resistance: 19,900 and 20,000
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