Nifty 50 November futures (19,079)

The Indian benchmark indices are witnessing a relief rally after three days of sharp fall. The Sensex and Nifty 50 are up about 0.9 per cent each. It is important for the indices to achieve a strong follow-through rise from here and sustain higher.

Nifty (19,013) is trading just above 19,000. The index would have to rise decisively past 19,100 to reduce the danger of falling back again. The price action and closing for the week today will need close watch. That would be key in setting the tone for the markets going forward.

Global indices

In Asia, most of the major indices are in the green. Nikkei 225 (30,950) and Hang Seng (17,213) are up 1 per cent. The Kospi (2,299) is flat and Shanghai Composite (2,998) is up by 0.35 per cent.

The Dow Jones Industrial Average (32,784) in the US was down 0.76 per cent. The index has dropped below the key support level of 32,850. There is room for the Dow Jones to extend the fall up to 32,700-32,600 from here.

Nifty 50 futures

The Nifty November futures (19,079) is up 0.58 per cent. Support for the contract is in the 18,930-18,900 region. As long as the contract stays above this support zone, there are chances it could see a further rise to 19,200 and even 19,300 in the coming sessions.

The contract could fall further if it declines below 18,900. In that case, the downtrend will continue targeting 18,800-18,700, and even lower levels.

Trade strategy

The overall sentiment has not turned convincingly positive. So, there is a chance of a further fall. As such, we suggest that traders stay out of the market today. See how the indices close for the week today. Trades can be taken accordingly next week.

Supports: 18,900, 18,850

Resistances: 19,200, 19,300

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