Nifty 50 opened with a wide gap-up today and is trading higher. The support at 25,450-25,400 mentioned yesterday has held very well as expected. Indeed, the bounce back move from there has taken the index well above the expected level of 25,600.
Nifty is currently trading at 25,855, up 0.62 per cent. The advances/declines ratio is at 32:18. This is positive.
Nifty 50 Outlook
The outlook is bullish. Immediate support is at 25,780. Nifty can test 25,900. The price action thereafter will need a watch. If the Nifty manages to breach 25,900, a further rise to 26,000 can be seen.
On the other hand, a reversal from around 25,900 can trigger a corrective fall to 25,800 or even 25,700.
So, the price action around 25,900 will need a close watch during the day.
Nifty 50 Futures
The Nifty 50 November Futures (25,940) is up 0.5 per cent. Intraday resistance is at 25,980 which is holding well for now. The contract has to breach this hurdle to move further higher. Only then a rise to 26,050 will come into the picture.
Failure to breach 25,980 can take the contract down to 25,870, an important intraday support. A break below 25,870 can then trigger a deeper fall to 25,750 during the day.
We will have to wait and watch.
Trade Strategy
The presence on an immediate resistance and the risk/reward ratio does not favour a fresh long position now. So, traders are advised to stay out of the market.
Support: 25,870, 25,750
Resistances: 25,980, 26,050