Nifty 50 November Futures (23,465)
The fall in Nifty 50 continues. The index has opened the week on a weak note. It is currently trading at 23,422, down 0.47 per cent. The advances/declines ratio is at 18:32. This is negative and indicates that more fall could be on the cards for the day.
Nifty 50 outlook
Nifty has declined below an intermediate support level of 23,450. The region between 23,450 and 23,500 can be a good resistance for the day.
The bias is negative. Nifty can fall to 23,250-23,200 during the day. To avoid this fall, a strong rise above 23,500 is needed. If that happens, a relief rally to 23,600-23,700 can be seen.
Nifty 50 Futures
The Nifty 50 November Futures (23,465) is down 0.57 per cent. There is support at 23,400. A break below it can drag the contract down to 23,200-23,150.
In case the contract manages to sustain above 23,400 and bounces back, a rise to 23,650 can be seen.
The bias is negative. So we expect the Nifty 50 November Futures contract to break 23,400 and fall to 23,250 either from here itself or after a short-lived bounce to 23,650.
Trading strategy
Go short on a break below 23,400. Keep the stop-loss at 23,460. Trail the stop-loss down to 23,360 as soon as the contract falls to 23,330. Move the stop-loss further down to 23,310 when the contract touches 23,290. Exit the shorts at 23,260.
Supports: 23,400, 23,250
Resistances: 23,600, 23,700