The Indian benchmark indices — Nifty 50 and Sensex — are up in the initial hour of trade today even as the equity market across Asia is sending out a mixed signal. The Nifty 50 at 18,205 and the Sensex at 61,300 are up by one-fourth of a per cent so far today.
Among the Asian majors, ASX 200 (7,191) and Nikkei 225 (28,140) are up by 0.7 per cent each, whereas Hang Seng (17,620) and KOSPI (2,410) are down by 0.2 and 0.3 per cent, respectively.
The market breadth of the Nifty 50 index is indicating a bullish bias, as the advance-decline ratio stands at 33/17. All the mid- and small-cap indices are up today, and the volatility has dropped, as shown by India VIX, which is down by 2 per cent today.
Among sectors, Nifty Metal, gained the most — 0.6 per cent — whereas Nifty Realty lost the most — 0.9 per cent.
While the above factors point to a bullish sentiment, the Nifty faces key hurdles ahead. So, one should be cautious about today’s up-move.
Nifty 50 futures
The November futures of the Nifty 50 index opened the day higher at 18,221 versus Monday’s close of 18,192. It has now moved up to 18,240.
Note that the contract has resistance at 18,250 and 18,300. The bulls might find it difficult to lift the contract above these levels.
The current weekly expiry option shows considerable writing of 18,300 call options and 18,200 put options, and that means the Nifty 50 index and, consequently, its futures, may stay sideways until Thursday.
Resistance above 18,300 is at 18,400 whereas support below 18,200 is at 18,125 and 18,050.
Stay on the sidelines for now and initiate fresh trades along the direction of the break of the 18,170–18,300 range.
Supports: 18,170 and 18,125
Resistance: 18,250 and 18,300