Nifty 50 November Futures (18,293)

Sensex and Nifty 50 are trading marginally higher. Both the indices opened with a gap-up but have come-off from the day’s high. Nifty has come down after open at the day’s high of 18,325.20. It is now trading at 18,272, up 0.15 per cent.

The broader outlook is positive. However, a strong break above 18,400 is needed to gain bullish momentum. Intraday support is in the 18,230-18,200 region which can limit the downside. We expect the Nifty to sustain above 18,200 and rise to 18,350-18,400 in the coming sessions.

Global cues

In Asia, barring the Shanghai Composite (3,083, down 0.19 per cent) other major indices are in green. Hang Seng (17,497), Kospi (2,415) and Nikkei 225 (28,115) are down in the range of 0.4-0.6 per cent.

In the US, the Dow Jones Industrial Average (34,098.10) has risen over a per cent on Tuesday. If it manages to sustain above 34,000, a further rise to 34,500 and even 35,000 can be seen in the coming days.

Nifty 50 Futures

The Nifty 50 November Futures (18,293) is up marginally by 0.07 per cent. Intraday support is at 18,265. Below that, 18,225 and 18,200 are the next key supports for the day. We expect the Nifty 50 November Futures contract to sustain above 18,265 and bounce back towards 18,400 in the coming sessions.

The contract will come under pressure only if it breaks below 18,200. In that case, a steeper fall to 18,100 is possible.

Trading Strategy

Wait for dips and go long at 18,270. Keep the stop-loss at 18,210. Trail the stop-loss up to 18,295 as soon as the contract moves up to 18,315. Move the stop-loss further up to 18,340 when the contract touches 18,360 on the upside. Book profits at 18,390.

Supports: 18,265, 18,225

Resistances: 18,340, 18,400