Technical Analysis

Nifty Call: Stay out of the market

Gurumurthy K | Updated on October 15, 2018 Published on October 15, 2018

Nifty 50 October Futures (10,415)

Trading in the Nifty 50 futures contract is subdued. The contract opened with a 15-point gap-up at 10,500, but failed to sustain higher. It made a high of 10,503.9 and has come-off sharply from there. It is currently trading at 10,418.

The near-term outlook is unclear. Key support is in the 10,400-10,385 region and resistance is at 10,500. A breakout on either side of 10,385 or 10,500 will decide the next move. Traders can stay out of the market until a clear trend emerges.

If the index futures manage to sustain above 10,400, an upmove to 10,500 can be seen. A strong break above 10,500 is needed to boost the momentum. Such a break will then pave way for a fresh rally to 10,600 in the coming sessions.

On the other hand, if the Nifty 50 futures contract breaks decisively below 10,385, it can fall to 10,300 or even lower in the coming sessions.

Strategy: Stay out of the market

Supports: 10,410, 10,385

Resistances: 10,460, 10,500

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