Nifty 50 November futures (20,033)

Nifty 50 has opened the day with a wide gap-up and is trading strong. It is trading at 20,008, up 0.6 per cent. Outlook is bullish. Immediate support is at 19,980. Nifty can rise to 20,200. A fall below 19,800 will only bring the index under pressure. But such a fall is unlikely as fresh buyers are likely to come into the market at lower levels.

Global indices

Asian markets are mixed. Nikkei 225 (33,457.60) is up 0.14 per cent and Kospi (2,520) is flat. Hang Seng (17,010) and Shanghai Composite (3,030) are down 2 and 0.27 per cent respectively.

In the US, the Dow Jones Industrial Average (35,416) was up 0.24 per cent. As mentioned yesterday, 35,500 and 35,750 are crucial resistances. The index can rise to test these resistances in the coming days. But the price action thereafter will need a close watch to see if the index is reversing lower or not.

Nifty 50 futures

The Nifty 50 November futures (20,033) is up 0.5 per cent. Immediate support is at 20,000-19,980. The contract can rise to 20,130-20,150 in the coming sessions. There is potential for the upside to extend up to 20,300 in the coming days.

The near-term outlook will turn negative only if the Nifty 50 November futures declines below 19,980. In that case, a fall to 19,930-19,900 is possible.

Trade strategy

Traders can go long now. Accumulate on dips at 20,010. Keep the stop-loss at 19,970. Trail the stop-loss up to 20,045 as soon as the contract moves up to 20,070. Move the stop-loss further up to 20,080 when the contract touches 20,105. Exit the long positions at 20,120.

Supports: 19,980, 19,900

Resistances: 20,130, 20,200

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