Nifty 50 November Futures (7,993) The Nifty futures contract started the derivatives expiry session on a negative note with a gap-down, opening at 7,987. The contract then extended its decline and recorded an intra-day low at 7,967. However, it took support at this intra-day low and began to recover. The contract currently tests a key resistance at 8,000 levels.

A strong breach of this resistance can take the contract higher to 8,025. Further breakthrough of the resistance level of 8,025 is required to strengthen the bullish momentum and take the contract northwards to 8,050 levels.

The inability to move beyond 8,000 decisively can keep the selling pressure in place and pull the contract down to 7,980 and then to 7,960 or 7950 levels in the near future. Key supports below 7,950 are at 7,925 and 7,900 levels. The Nifty 50 index advance/ decline ratio is biased towards declines. Traders with a short-term perspective should tread with caution and consider initiating fresh long positions on a strong rally beyond 8,000 with a stop-loss at 7,985.

Strategy: Go long on a strong rally beyond 8,000

Supports: 7,980 and 7,960

Resistances: 8,000 and 8,025

Related Topics