Nifty 50 November futures (24,280)

Nifty 50 has began the week on a strong note with a wide gap-up open.  After closing at 23,907 on Friday, the index opened at 24,253 today. It is currently trading at 24,277, up 1.55 per cent. The advances/declines ratio is at 47:3. If this trend sustains, then there are good chances for the Nifty to rise further during the day.

Nifty 50 outlook

The rise above 24,100 is significant. That leaves the short-term outlook bullish for the Nifty to see a rise to 24,500-24,600 this week.

Support will be around 24,000. Nifty has to fall below 24,000 in order to come under pressure. But that looks less likely for now.

Nifty 50 futures

The Nifty 50 November futures (24,280) is up 1.65 per cent. Outlook is bullish to see a rise to 24,700 this week. Support is in the broad 24,100-23,900 region.

The Nifty 50 November Futures contract will have to fall below 23,900 in order to become bearish again. But that looks less likely.

Trading strategy

Since the support is much lower from current levels, we suggest positional trades at the moment. A trade with a one-week time frame looks more suitable for now rather than taking an intraday trade. Wait for dips and go longs at 24,130 and 23,980. Keep the stop-loss at 23,860. Trail the stop-loss up to 24,210 as soon as the contract moves up to 24,320. Move the stop-loss further up to 24,380 when the contract touches 24,460. Exit the long positions at 24,580.

Supports: 24,100, 23,900

Resistances: 24,600, 24,700

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