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Nifty 50 January futures (8,434)
After a negative opening at 8,422 levels, the Nifty futures contract started to move sideways, recording choppy movement. The contract has recorded an intra-day low at 8,409 and an intra-day high at 8,446 levels. The Nifty 50 index is also volatile. The advances/ declines ratio is almost even. A mixed trend is seen in the Asian markets. Traders with a short-term perspective should tread with caution as long as the contract moves sideways in the band between the 8,420 and 8,450 levels. Fresh short positions are recommended on a strong fall below 8,420, with a tight stop-loss at 8,430.
The contract can test key support at 8,400 levels. A further decline below this level is required to strengthen the downtrend and pull the contract down to 8,380 and 8,350 levels. On the other hand, to reinforce the bullish momentum, the contract needs to decisively move beyond the immediate resistance level of 8,450. The next resistances are at 8,470 and 8,500 levels.
Strategy: Desist from trading as long as the contract moves in the band between 8,420 and 8,450
Supports: 8,420 and 8,400
Resistances: 8,450 and 8,470
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