Nifty 50, the benchmark index, opened today’s session almost flat at 24,490 versus yesterday’s close of 24,484. But the index has seen a decline to 24,340, down about 0.6 per cent in early trade.

The advance/decline ratio of Nifty 50 stands at 5/45, showing a considerable bearish bias. Apollo Hospitals, up 6.7 per cent, is the top gainer whereas Hindalco, down 7.2 per cent, is the top loser.

The mid and the small cap indices appear mixed but most of the sectors are in the red. Nifty Metal and Nifty Pharma, down 1.3 and 1.2 per cent respectively, are the weakest. Nifty Media, up 0.7 per cent, is the best performer so far today.

Major Asian equity indices are mixed – Hang Seng (20,750) and KOSPI (2,570) are up 1 and 0.3 per cent respectively; Nikkei 225 (39,300) is down 0.3 per cent whereas ASX 200 (8,200) is flat.

Nifty 50 futures

The November futures of Nifty 50 began the session lower at 24,549 versus yesterday’s close of 24,587. It is now hovering around 24,350, down nearly 1 per cent.

The contract has support levels ahead at 24,330 and 24,250. Between these two levels lies a trendline support as well. If 24,250 is breached, the downswing can extend to 24,000.

But if Nifty futures recover on the back of the support band of 24,250-24,330, it can face resistance again at 24,630. Note that the current sell-off started on the back of this resistance. Only a decisive breach of 24,630 can turn the trend positive.

Trading strategy

Although Nifty futures exhibit bearish bias, there are supports ahead. So, stay on the fence and go short if the support at 24,250 is taken out. Target and stop-loss can be 24,000 and 24,350 respectively.

Supports: 24,330 and 24,250

Resistance: 24,630 and 24,750

Related Topics