Technical Analysis

The Nifty call: Index futures to remain range-bound

Gurumurthy K BL Research Bureau | Updated on November 22, 2018 Published on November 22, 2018

Go short on a break below 10,580 with a stop-loss at 10,605

Nifty 50 November Futures (10,624)

The Nifty 50 futures contract has been stuck in a narrow range between 10,600 and 10,650. The near-term outlook is mixed. A key resistance is at 10,675 and support is at 10,580. A breakout on either side of 10,675 or 10,580 will determine the direction of the next move. Until then the index futures can remain range bound broadly between 10,580 and 10,675.

A strong break above 10,675 will ease the downside pressure. Such a break will take the Nifty 50 futures contract higher to 10,715 and 10,750 thereafter.

On the other hand, if the contract declines decisively below 10,580, it can fall initially to 10,550. A further break below 10,550 will then increase the likelihood of the contract extending its down-move to 10,520 and 10,500 in the coming sessions.

On the charts, the bias is negative. The bounce-back move from Wednesday’s low of 10,577 seems to be lacking strength. This leaves the possibility high of the contract breaking below 10,580.

Traders can go short on a break below 10,580. Stop-loss can be placed at 10,605 for the target of 10,530. Revise the stop-loss lower to 10,565 as soon as the contract moves down to 10,555.

Strategy: Go short on a break below 10,580 with a stop-loss at 10,605

Supports: 10,580, 10,550

Resistances: 10,675, 10,715

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