Nifty 50 November Futures (19,480)

Sensex and Nifty 50 have begun the week on a negative note. The benchmark indices have failed to get a strong follow-through buying after rising in the special Muhurat trading on Sunday. Sensex is trading at 64,890, down 0.56 per cent. Nifty is at 19429, down 0.5 per cent.

The resistance at 19,550 has held very well on the Nifty. We see good chances of the Nifty falling back to 19,300. That will also keep the danger alive of the index breaking below 19,300 and falling to 19,000 this week.

Global indices

In Asia, Nikkei 225 (32,573) is flat whereas other major indices are in red. Kospi (2,406), Hang Seng (17,179) and Shanghai Composite (3,033) are down in the range of 0.10-0.20 per cent.

The Dow Jones Industrial Average (34,283) has surged over a per cent on Friday. The index is looking much stronger than India’s Nifty and the Sensex. As such we can expect the Dow Jones to outperform the Indian markets this week.

The Dow Jones can rise to 34,500 first. A break above 34,500 can take it further up to 35,000 and higher going forward

Nifty 50 Futures

The Nifty 50 November Futures (19,480) is down 0.3 per cent. Outlook for the day is negative. Intraday resistance is in the 19,500-19,530 region. The contract can fall to 19,400 during the day.

To turn the outlook bullish, the Nifty 50 November Futures contract will have to rise past 19,600 decisively.

Trade Strategy

Traders can go short now. Accumulate shorts on a rise at 19,510. Keep the stop-loss at 19,535. Trail the stop-loss down to 19,460 as soon as the contract moves down to 19,445. Move the stop-loss further down to 19,440 when the contract touches 19,425 on the downside. Exit the short positions at 19,410.

Supports: 19,400, 19,350

Resistances: 19,530, 19,600

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