Nifty 50 November futures (18,414)

Nov 17 The Sensex and Nifty 50 are trading marginally lower today. Both the indices have been struggling to get strong follow-through buying over the last few days.

Nifty has not gained the momentum to breach the key level of 18,400. This keeps alive the chances of a corrective fall in the near-term. However, the immediate outlook is mixed and unclear. Key resistance for the Nifty is in the 18,400-18,450 band. A strong break above 18,450 is needed before the Nifty can regain the bullish momentum and move up to 18,600 and higher levels

Global cues

All the major Asian indices are trading in the red. The Hang Seng (17,880) has been beaten down the most by 2 per cent, followed by Kospi (2,448) down 1.16 per cent. The Nikkei 225 (27,992) and Shanghai Composite (3,097) are down 0.38 and 0.72 per cent.

In the US, the Dow Jones Industrial Average (33,553.83, down 0.12 per cent) has been range-bound over the last few days. Important resistance is at 34,000. A strong rise past this hurdle can take the Dow Jones higher in the coming days.

Nifty 50 futures

The Nifty 50 November futures (18,414) contract is down 0.21 per cent. The contract has been broadly range-bound between 18,300 and 18,500. A breakout on either side of this range will give clarity on the next direction.  

A break below 18,300 can drag it down to 18,200-18,100. On the other hand, an upside break above 18,500 will be bullish, opening up the 18,550-18,600 band in the near-term. The chances for the contract to break the 18,300-18,500 range on the upside are high.

Trading strategy

We suggest that traders stay out of the market until a breakout of the 18,300-18,500 range is seen.

Supports: 18,370, 18,300

Resistances: 18,500, 18,550

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