Nifty 50 November Futures (19,835)

Nifty 50 has come down after opening with a wide gap-up today. The index touched a high of 19,848 in the opening trades and has come down from there giving back almost all the gains. It is currently trading at 19,815, up 0.1 per cent for the day.

Nifty is facing strong resistance in the 19,850-19,875 region. It has to breach 19,875 decisively to gain bullish momentum. Only in that case, a rise to 20,000 will come into the picture. As long as the index stays below 19,875 it can remain sideways between 19,700 and 19,875.

Global indices

Asian markets are trading mixed. Nikkei 225 (33,327) and Hang Seng (17,419) are down 0..4 and 0.6 per cent respectively. On the other hand, Kospi (2,515) and Shanghai Composite (3,035) are up 0.8 and 0.1 per cent respectively.

The Dow Jones Industrial Average (35,333) in the US had dipped slightly on Monday. It has crucial resistances at 35,500 and 35,750. A strong break above 35,750 would be needed for the index to continue to current upmove. A pull back from the 35,500-35,750 region will be bearish for the Dow Jones to see a fall to 35,000 and even lower in the coming days.

Nifty 50 futures

The Nifty 50 November Futures (19,835) is trading flat. The contract has come down sharply from its intraday high of 19,890. The contract has been broadly stuck between 19,780 and 19,930 over the last few trading days. Within this range, the chances are looking high for the contract to come down to 19,800-19,780 – the lower end of the range during the day today.

A breakout on either side of 19,780-19,930 will determine whether the contract will go up to 20,000 or fall to 19,700 and lower. We will have to wait and watch.

Trade strategy

We suggest traders to stay out of the market. Wait for the range breakout. Trades can be taken after that accordingly.

Supports: 19,780, 19,700

Resistances: 19,930, 20,000