Nifty 50 November futures (24,165)
Nifty 50 seems to be struggling to get a strong follow-through buying. The bounce back move from the intraday low on Monday looks shallow. It also shows lack of strength. The same is visible today also. After opening higher at 24,343, the index has come down giving back most of the gains. It is currently trading at 24,240, marginally up by 0.1 per cent. The advances/declines ratio is at 18:31. This leaves the bias negative.
Nifty 50 outlook
Nifty is facing resistance in the 24,350-24,400 region. A strong break above 24,400 is needed now to boost the momentum and take the index up to 24,600-24,700.
Immediate support is at 24,100 which is likely to be tested during the day. A break below 24,100 can take the index down to 24,000-23,950.
Broadly, 24,100-24,400 can be the trading range for now. A breakout on either side of this range will then determine the next leg of move.
Nifty 50 futures
The Nifty 50 November futures (24,165) is down 0.4 per cent. The contract is likely to test 24,100 during the day. A break below 24,100 can take it down to 24,000 or even 23,900.
In case the contract manages to bounce from around 24,100, it can rise back to 24,300-24,350. A strong rise above 24,400 is needed to gain strength. Only then a rise to 24,600-24,700 will come into the picture.
Trading strategy
Traders with high-risk appetite can go short on a break below 24,100. Keep the stop-loss at 24,140. Trail the stop-loss down to 24,085 as soon as the contract falls to 24,060. Move the stop-loss further down to 24,055 when the price touches 24,040. Exit the shorts at 24,020.
Supports: 24,100, 24,000
Resistances: 24,300, 24,400