Nifty 50 November Futures (20,106)

Nifty 50 has come down and is trading lower today after having risen sharply on Wednesday. Support is in the 20,020-20,000 region and then in the 19,930-19,900 zone. As long as the Nifty stays above 19,900, the broader bias will remain positive. As such we can expect the Nifty to sustain above 20,000 itself and move up to 20,200-20,300 in the coming days. In case a dip below 20,000 happens, the downside will be limited to 19,900.

The outlook will turn negative only if the Nifty declines below 19,900. In that case, a fall to 19,800 and lower can be seen. But such a fall looks less likely for now.

Global indices

Asian major indices are all in green. Nikkei 225 (33,398), Kospi (2,520), Hang Seng (17,024) and Shanghai Composite (3,026) are all up in the range of 0.1-0.2 per cent.

The Dow Jones Industrial Average (35,430) was flat yesterday. The index is struggling to get a sustained rise above 35,500. The price action in the coming days will need a close watch. We repeat that, 35,500 and 35,750 are very important resistances. Failure to rise past these hurdles and a fall can drag the Dow Jones below 35,000 in the coming days.

Nifty 50 Futures

The Nifty 50 November Futures (20,106) is down 0.15 per cent. The contract made a low of 20,006 and has risen back very well from there. Strong support is at 20,000 which is holding well as of now.

Outlook is bullish. Resistance is at 20,150. A break above 20,150 can take the contract up to 20,300-20,350.

The contract will come under pressure for a fall to 19,900-19,850 only on a break below 20,000.

Trade Strategy

Traders can wait for dips. Go long at 20,060 and 20,040. Keep a stop-loss at 19,980. Trail the stop-loss up to 20,085 as soon as the contract moves up to 20,110. Move the stop-loss further up to 20,140 when the contract touches 20,155. Exit the long positions at 20,180.

Supports: 20,000, 19,900

Resistances: 20,150, 20,300

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