Nifty November Futures (19,132)

Nifty 50 and Sensex are attempting to recover from their day’s lows. Both the indices are trading flat. Sensex is trading at 63,840 and Nifty is at 19,061. The broader picture is still weak. 

Nifty has immediate resistance around 19,100. Above that 19,200-19,250 is the next important resistance zone. Nifty has to rise past 19,250 decisively. Only then it can bring back the bullishness. As long as it trades below 19,250, the bias will remain negative. A fall to 18,800-18,700 is likely in the coming sessions.

Global indices

Asian markets are trading mixed. Nikkei 225 (30,576) and Hang Seng (17,349) are down 1.34 and 0.28 per cent respectively. On the other hand, Shanghai Composite (3,022) and Kospi (2,310) are up 0.17 and 0.37 per cent respectively.

The Dow Jones Industrial Average (32,417.59) declined sharply over a per cent on Friday. It looks bearish to see an extended fall to 32,000 and even lower this week.Nifty 50 Futures

The Nifty 50 November Futures (19,132) is trading flat. It has resistance at 19,180. A break above it can take it up to 19,230-19,250 during the day. However, teh big picture is weak. As such we can expect the contract to reverse lower again from the 19,230-19,250 resistance zone. Such a reversal can drag the contract down to 18,900-18,800 again and even lower eventually going forward.

Trade strategy

Considering the risk/reward ratio, long positions to capture the rise to 19,230-19,250 is not very favourable. So we suggest traders to stay out of the market today and wait for the rise to happen. Short positions can be taken later after that.

Supports: 19,000, 18,900

Resistances: 19,180, 19,250

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