Technical Analysi

Nifty Call: Nifty 50 November Futures (17,940)

Gurumurthy | Updated on November 08, 2021

A strong break above 18,060 is needed for the contract to move up

BL Research Bureau

The Indian benchmark indices are trading weak. Both Sensex and Nifty 50 are down. Sensex is at 59,960 down 0.18 per cent and Nifty is down by 0.15 per cent and is trading at 17,890. The outlook for the indices is negative. Sensex can fall to 59,000 and Nifty can test 17,500 in the coming days. These levels of 59,000 and 17,500 are important supports which will need a close watch. A break below these supports can then trigger a steeper fall going forward.

On the global front, the Dow Jones Industrial Average (36,328) has closed on positive note last week. If it manages to sustain above 36,000 a rise to 37,000 is possible this week. However, the positive bias in the US market seems not be spilling over the Indian indices. So, the rise in the Dow to 37,000 may not aid in lifting up the Sensex and Nifty.

In Asia, except the Shanghai Composite index others are trading in red. Shanghai Composite (3,506) is up 0.42 per cent. Nikkei 225, Hang Seng and Kospi are down in the range of 0.25-0.6 per cent.

Futures: The Nifty 50 November Futures contract is down 0.15 per cent. It is trading at 17,940. Strong resistance is in the 18,050-18,060 range. As long as the contract remains below 18,060, the outlook will remain bearish to see a fall to 17,750-17,600 in the coming sessions. Traders can go short now and accumulate on rallies at 18,030. Stop-loss can be placed at 18,160. Trail the stop-loss down to 17,900 as soon as the contract moves down to 17,850. Move the stop-loss further down to 17,845 as soon the contract moves down to 17,780. Book profits at 17,760.

A strong break above 18,060 is needed for the contract to move up towards 18,300 again and negate the fall to 17,750 and 17,600 mentioned above.

Strategy: Go short now and accumulate on rallies at 18,030. Keep the stop-loss 18,160 and trail it down to 17,900 as soon as the contract moves down to 17,850. Move the stop-loss further down to 17,845 as soon the contract moves down to 17,780. Book profits at 17,760.

Supports: 17,750 and 17,600

Resistances: 18,060 and 18,300

Published on November 08, 2021

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