Nifty 50 November Futures (24,200)

Nifty 50 remains stable. The index is trading at 24,115, down 0.14 per cent. It is managing to sustain above the psychological 24,000 mark but is not getting strong buyers to take it higher. The advances/declines ratio is at 20:30. This can keep the sentiment negative. If this trend continues, then the chances are high for the Nifty to decline below 24,000.

Nifty 50 Outlook

Nifty (24,115) has a cluster of resistance in the broad 24,200-24,300 region. So, a strong and sustained rise above 24,300 is needed for the index to gain bullish momentum. Only then the rise to 24,500 and higher will come into the picture.

As long as the Nifty stays below 24,300, the bias will remain negative. So, the chances are high for the index to break below 24,000. Such a break can take the Nifty down to 23,800 in the coming sessions.

Nifty 50 Futures

The Nifty 50 November Futures (24,200) is down 0.08 per cent. The contract has resistance in the 24,250-24,350 region. The bias is negative for the Nifty 50 November Futures contract to see a fall to 23,900 in the coming sessions.

To avoid this fall, the contract has to breach 24,350. If that happens, then a rise to 24,500 is possible.

But the price action on the chart leaves the bias negative. As such we can expect the contract to stay below 24,350 and fall in the coming sessions.

Trade Strategy

Traders can wait for a rise and go short at 24,270 and 24,340. Keep the stop-loss at 24,390. Trail the stop-loss down to 24,220 as soon as the contract falls to 24,180. Move the stop-loss down to 24,110 when the contract touches 24,080. Exit the shorts at 24,050.

Supports: 24,000 - 23,900

Resistances: 24,250 - 24,350

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