Technical Analysis

The Nifty Call: Nifty 50 October Futures (18,135)

Gurumurthy K BL Research Bureau | Updated on October 13, 2021

Go long now and accumulate on dips at 18,110

Indian equities are trading higher today. Both Sensex and Nifty have risen to their new life-time highs. Nifty made a new high of 18,143.8 and is currently at 18,140. The index is up 0.82 per cent for the day. Sensex rose to a high of 60,0675.68 and is currently at 60,648, up 0.6 per cent for the day. The outlook is bullish. Sensex can touch 61,000 and the Nifty can test 18,200 now.

On the global front, the Dow Jones Industrial Average (34,378.34) fell further on Tuesday. The index is falling in line with our expectation, within its 33,500-35,000 range. Our view of seeing a test of 33,500 on the downside in the coming days remains intact.

The Asian indices are trading mixed. Nikkei 225 (28,163) is down 0.23 per cent while Shanghai Composite (3,563.65) and Kospi (2945.63) are up 0.45 per cent and 1 per cent, respectively.

Futures

The Nifty 50 October Futures (18,135) contract is trading up by 0.76 per cent. The contract can rise to 18,200. Immediate support is at 18,100 and the next is in the 18,060-18,040 region.

Traders can go long now and accumulate on dips at 18,110. Stop-loss can be placed at 18,080 for the target of 18,200. Trail stop-loss up to 18,160 as soon as the contract moves up to 18,180. Move the stop-loss further up to 18,175 as soon as the contract touches 18,190.

Inability to break above 18,200 can trigger a pull-back move to 18,100 and even lower in the coming sessions. As such the price action at 18,200 will need a close watch.

Strategy

Go long now and accumulate on dips at 18,110. Keep the stop-loss at 18,080. Book profits at 18,200. Trail stop-loss to 18,160 as soon as the contract moves up to 18,180. Move the stop-loss further up to 18,175 as soon as the contract touches 18,190.

Supports: 18,100 and 18,060

Resistances: 18,200 and 18,250

Published on October 13, 2021

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