Nifty 50 December Futures (8,139)
The Nifty futures December contract started the session on a negative note at 8,132. However, after recording an intra-day low at 8,124, it started to recover. But the contract encountered resistance at around 8,150 and continues to trade volatile. The contract can continue to move sideways in the band between 8,124 and 8,150.
Traders with a short-term perspective should tread with caution as long as the contract trades in this band. Consider initiating fresh long positions on a strong rally beyond 8,150 with a fixed stop-loss at 8,140. The contract can extend its upmove and test subsequent resistances at 8,175 and 8,200 levels in the short term.
But a decline below the immediate support level of 8,125, could strengthen the bearish momentum and the contract could decline further to test support at 8,100. In this case, short-term traders can go short with a tight stop-loss for a downside target of 8,100 levels. Further fall below 8,100 can pull the contract down to 8,080 and then to 8,060 levels.
Strategy: Desist from trading as long as the contract trades in the band between 8,125 and 8,150.
Supports: 8,125 and 8,100
Resistances: 8,150 and 8,175