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Nifty 50 November Futures (10,523)
Nifty 50 futures contract opened the week on a volatile note. The contract opened with a gap-up at 10,573 and made a high of 10,581.9. However, it failed to sustain higher and has come down sharply to make a low of 10,492.4.
It has bounced back from this low and is currently trading at 10,523. The broader downtrend remains intact. A key intraday resistance is at 10,550 which is likely to be tested. Whether the contract breaks above this hurdle or not will decide the next move.
A strong break above 10,550 will ease the downside pressure and will take the contract higher to 10,585 and 10,600. But a pull-back from 10,550 will take the index futures lower to 10,500 and 10,490 again. A decisive break below 10,490 will then drag the contract lower to 10,465 and 10,450 in the coming sessions.
Traders can go short on a reversal from 10,550. Stop-loss can be placed at 10,575 for the target of 10,480. Revise the stop-loss lower to 10,530 as soon as the contract moves down to 10,515.
Strategy: Go short on a reversal from 10,550 with a stop-loss at 10,575
Supports: 10,490, 10,465
Resistances: 10,550, 10,585
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