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Nifty 50 November futures (18,335)
Nov 18 The Sensex and Nifty 50 are trading lower on Friday. The Nifty is at 18,300, down 0.24 per cent, while the Sensex at 61,617 is down 0.22 per cent.
The resistance at 18,400 on the Nifty is holding well. The Nifty has come off the high of 18,393.8 and is on the verge of breaking below the key support level of 18,300. Intraday resistance will now be at 18,325. If the Nifty fails to bounce above 18,325, the chances of a drop to 18,200 and further lower levels are high. A break below 18,280 can trigger this fall. The charts show a negative bias for the Nifty to remain below 18,320 and fall to 18,200 in the coming sessions.
Global cues
In Asia, the major indices are trading mixed. The Nikkei 225 (27,901) and Shanghai Composite (3,111) are down 0.11 per cent each. Hang Seng (18,146) and Kospi (2,450) are up 0.56 and 0.25 per cent respectively.
In the US, the Dow Jones Industrial Average (33,546) closed on a flat note on Thursday. The Dow has to break above 34,000 decisively to resume the broader upmove and target 35,000 going forward.
Nifty 50 futures
The Nifty 50 November futures (18,335) is under pressure. It is trading just above the key support level of 18,320. A break below it can drag the contract down to 18,220 and even lower in the coming sessions.
The contract has to bounce above 18,350 to reduce the danger of it falling below 18,320 and moving up to 18,400.
Trading strategy
Traders with a high-risk appetite can go short now. Keep the stop-loss at 18,370. Trail the stop-loss down to 18,315 as soon as the contract falls to 18,290. Move the stop-loss further down to 18,270 when the contract touches 18,245 on the downside. Book profits at 18,235.
Supports: 18,320, 18,220
Resistance: 18,350, 18,400
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