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Nifty futures (19,850)
The Nifty 50 (19,815) opened today’s session at 19,828.45 versus yesterday’s close of 19,811.85. It is now at 19,805.
Like the benchmark index, the mid-cap indices appear flat after the initial hour of trade. Interestingly, though, the small-cap indices are in the green. For instance, the Nifty Midcap 50 is flat, whereas the Nifty Smallcap 50 is up 0.8 per cent.
Within sectors, Nifty Realty, up 1.4 per cent, is the top gainer, whereas Nifty Pharma, down 0.9 per cent, is the top loser.
Nifty 50 futures
The November futures contract of the Nifty 50 opened today’s session higher at 19,903.05, versus yesterday’s close of 19,884.10. It is currently trading at 19,850, down 0.1 per cent.
Over the past few days the Nifty futures has been oscillating in the range of 19,750 and 19,900. Currently trading near the upper band of the range, the likelihood of a decline is high.
The nearest support from the current level is at 19,750. A breach of this level can drag the contract to 19,650.
On the other hand, if Nifty futures break out of 19,900, it can rally to 20,000. A rally beyond 20,000 is unlikely today.
Trading strategy
Nifty futures is trading near a range top and thus, the risk-reward is favourable for short positions. Hence, traders can short the contract at the current level of 19,850. Target and stop-loss can be at 19,750 and 19,910 respectively.
Supports: 19,750 and 19,650
Resistance: 19,900 and 20,000
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