Technical Analysis

The Nifty call: Near term outlook bullish

Yoganand D BL Research Bureau | Updated on October 29, 2018 Published on October 29, 2018

Nifty 50 November Futures (10,150)

The Nifty and the Sensex started the week with a gap-up open and continued to move higher. The market breadth of the Nifty index is biased towards advances. All the sectoral indices are in positive territory.

The Nifty Pharma and PSU bank indices have surged 4 per cent and 5 per cent respectively. The Small and Mid-cap indices have also gained more than 1 per cent in today's session.

The Nifty November futures contract began the session with a gap-up open at 10,089 levels. After an initial dip to the intra-day low of 10,055, the contract resumed its up move. The contract decisively breached the key resistance at 10,100 and has marked an intra-day high at 10,155 levels.

The near-term outlook will remain bullish as long as the contract trades above 10,100 levels. Traders with a near-term view can buy the contract in dips with a stop-loss at 10,090 levels.

The contract tests resistance at around 10,155. A strong break above the key resistance at 10,155 will strengthen the up-move and take the contract northwards to 10,175 and 10,200. On the other hand, a conclusive fall below the immediate support at 10,100 can bring selling pressure and drag the contract down to 10,075 and 10,050 levels. Next key supports are at 10,030 and 10,000.

Strategy: Buy in declines with a stop-loss at 10,090 levels.

Supports: 10,100 and 10,075

Resistances: 10,155 and 10,175

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