Nifty Futures Analysis- 14Oct2019

Nifty Futures are currently at 11,329 and they lost 100 points from day high of 14,333. In fact, Nifty futures have not been able to hold onto any of their gains, expect during the very few rally days in the last 2 months. Every gain of 100 points is faced with sharp selling within the same day in the afternoon session. This indicates very weak market sentiment and lack of buying interest.

However, Nifty index is now above its 200 day SMA, which is a positive sign. But this needs follow up confirmation, and we need the Nifty futures to stay above 11,300 and ideally, they should move above 11,400.

Nifty Futures Technical Analysis:
Based on today’s selling pressure, Nifty futures can go down till 11,260 this week to test lower level supports, and the upside target for this week is 11,480. There is a strong resistance at 11,500 and it will be difficult to cross that level this week. Nifty futures are safe for long trade as long as they are above their 200 SMA on hourly chart, which is currently at 11,180.

Nifty Futures Trading Strategy:
We want to buy Nifty futures on corrections and sell on rallies. We will aim for 50-100 points gain per trade. Nifty is not able to hold more than 100 points gain.

[Bonus Trade]
Buy Nifty Futures at 11,260 for Target 11,460 with 11,160 as Stop loss.

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