Nifty 50 November Futures (23,755)
Nifty 50 has seen a strong bounce today. The index is currently trading at 23,698, up 1 per cent. It is important to see if this bounce is sustaining or not. The advances/declines ratio is at 44:6. This is clearly positive. It also indicates that Nifty can sustain higher and move up further during the day.
Nifty 50 Outlook
The rise above 23,600 is a positive. Support will now be in the 23,600-23,500 region. As long as the Nifty stays above this support, the bias will remain positive. A rise to 23,800-23,850 is possible from here. The price action thereafter will need a close watch to see if the rise is extending or the index is turning down again.
Nifty will now have to fall below 23,500 to come under pressure again.
Nifty 50 Futures
The Nifty 50 November Futures (23,755) is up 1 per cent. Intraday support is at 23,650. The contract can rise to 23,900-23,950 in the coming sessions.
The above-mentioned rise will get negated only if the contract declines below 23,600. If that happens, then the contract can fall back to 23,400 again.
Trade Strategy
Traders can go long now at 23,755. Accumulate on dips at 23,680. Keep the stop-loss at 23,610. Trail the stop-loss up to 23,785 as soon as the contract goes up to 23,805 Move the stop-loss further up to 23,840 when the contract touches 23,880. Exit the longs at 23,920.
Supports: 23,650, 23,500
Resistances: 23,900, 24,000