Nifty 50 (19,140) started the session higher at 19,120 versus yesterday’s close of 18,989.15. The index is up 0.8 per cent after the initial hour of trade.
Supporting the positive bias, the advance/decline ratio of Nifty 50 stands at 45/5. Moreover, all mid- and small-cap indices are in the green. There is a drop in volatility, as indicated by India VIX, a bullish sign.
In addition, all the sectors have gained so far today, led by Nifty PSU Bank and Nifty Realty, up 2 and 1.4 per cent, respectively.
The equity indices across Asia have been rallying, providing a positive impetus to the Indian benchmark. Among the major Asian indices, Nikkei 225 (31,950), ASX 200 (6,900), Hang Seng (17,290) and KOSPI (2,340) have risen 0.9-1.8 per cent.
Broadly, the intraday trend appears positive for Nifty 50 and its futures. However, there are resistances ahead. This increases the likelihood of a sideways trend.
Nifty 50 futures
The November futures contract of Nifty 50 opened today’s session higher at 19,200.20, compared with Wednesday’s close of 19,060.25. It is now trading at 19,210, up 0.8 per cent.
The contract has moved above the resistance at 19,150. However, there are barriers at 19,280 and 19,350.
Overall, the rally can be limited due to the positive undertone today. In other words, Nifty futures may chart a horizontal path through the day.
The likely trading range for the day is 19,150-19,280.
Trading strategy
We suggest staying out today as the intraday trend may be flat.
Supports: 19,150 and 19,050
Resistance: 19,280 and 19,350