Despite the Asian equities sending out mixed signals, the Indian benchmark indices began today’s session with a gap-up. However, both Nifty 50 (18,220) and Sensex (61,230) have given up the gains and are now trading flat for the day.
Among the Asian majors, Nikkei 225 (27,725) and Hang Seng (16,305) are down by 0.5 and 1.5 per cent, respectively whereas ASX 200 (7,000) and KOSPI (2,423) have gained 0.6 and 1 per cent, respectively. This shows that the equity market performance for the day is scattered, indicating trends in Asian market may not significantly influence the domestic market.
Looking at the Nifty50’s market breadth, there is a positive bias as the advance-decline stands at 29-21. The mid- and small-cap indices are mixed. On the sectoral front, the Nifty PSU Bank is the top gainer, up by 1.9 per cent. On the other hand, the Nifty Metal is the worst performing index, down by 0.4 per cent so far today.
While there are no clear indications about today’s trend going by the factors mentioned, the Nifty50 chart is bullish, and it will remain firm until it stays above 18,200.
Nifty 50 futures
The November futures of the Nifty 50 index opened higher at 18,345 versus Monday’s close of 18,264. But it has now declined to 18,280.
From the current level, the contract has support at 18,200 and 18,140. We expect the Nifty futures to resume the uptrend either from the current level of 18,280 or after seeing a dip to 18,200.
On the upside, the contract has the potential to rally to 18,400 and even 18,500.
Given the above expectations, one can prefer long positions on Nifty futures.
Buy Nifty futures at 18,280 and add more longs if the price dips to 18,200. Place initial stop-loss at 18,140. When the price goes above 18,370, shift the stop-loss to 18,280. Note that this is an intraday trade recommendation and hence exit when the contract hits 18,400.
Supports: 18,200 and 18,140
Resistance: 18,400 and 18,500