Nifty 50 and Sensex have begun the week on a positive note. Both the indices are up about 0.6 per cent each. Sensex is trading at 64,759 and Nifty is at 19,352.

Support for the Nifty will now be around 19,250. A further rise to 19,500 is likely. But the price action thereafter will need a very close watch. The region around 19,500 has a strong resistance. Failure to rise past 19,500 can trigger a fresh leg of fall going forward.

Global indices

Asian markets are trading strong. Kospi (2,468) has surged over 4 per cent and Nikkei 225 (32,716) has risen over 2 per cent.

In the US, the Dow Jones Industrial Average (34,061) has risen and closed above 34,000 on Friday. It has resistance at 34,250 which is important to watch this week. Failure to break above it can take the index lower this week.

Nifty 50 Futures

Nifty 50 November Futures (19,452) is up 0.77 per cent. The outlook is bullish. Supports are at 19,400 and 19,350. The contract can rise to 19,600 in the next couple of days or so.

The Nifty 50 November Futures will come under pressure only if it declines below 19,350. In that case, it can fall back to 19,300-19,200 going forward. But such a fall looks less likely at the moment.

Trade Strategy

Traders can go long now. They can accumulate on dips at 19,420. Keep the stop-loss at 19,385. Trail the stop-loss up to 19,475 as soon as the contract moves up to 19,495. Move the stop-loss further up to 19,505 when the contract touches 19,520. Book profits at 19,540.

Supports: 19,400, 19,350

Resistances: 19,500, 19,600

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